Construction insurance can be the difference between your business being a great success, or failing. Ask yourself could your business survive a big liability claim, or pay the replacement costs if you damaged a building you are working on? In this article we will discuss the construction insurance you should have, and why you need it.
Essential Construction Insurance policies
The three types of construction insurance Farmer Brown Insurance recommends are Workers Compensation, General Liability and Builder’s Risk. A quick explanation of each is as follows:
This insurance provides coverage in the event that your employee is injured whilst at work. It covers the costs for required medical treatment and also the loss of income from not being able to work.
Also known as Construction Liability, this provides coverage if you are sued for negligence. It could be for damage to the structure on which you are working, or if your actions caused bodily harm to another person. General Liability will also provide coverage for the cost of your legal defense.
Builder’s Risk Insurance
Builder’s Risk is property insurance. It is applicable to certain types of building projects. This includes new buildings and the remodellng or renovation of existing structures. It is specialized coverage and is customized to your project or business. Typical risks included are the theft of tools and equipment, damage from vandalism, or property damage by accident or adverse weather.
Why is Construction Insurance vital?
Now that we have explained what construction insurance entails, we can look at why you should have it. Our top three reasons are as follows:
You protect your business and investment
With a combination of General Liability, Workers Compensation and Builder’s Risk insurance your construction business is properly protected. General Liability and Workers Compensation are mandatory and required by law. By adding Builder’s Risk insurance you close the gaps in your coverage.
You stand out from the crowd
Builder’s Risk insurance demonstrates to your client that you are professional. It gives them assurance that if something untoward happens on site, you will be able to address or fix it. With this construction insurance clients know their project and property is in good hands. This can be the difference between being chosen for a project or passed over for another.
You gain peace of mind
Construction can be a stressful business. Things can happen that force changes. For example Building Ordinances can change, causing delays that eat into your profit. This is a risk that could be included in your coverage. There will always be things you need to manage and respond to on your project, but you can have peace of mind that you have coverage when you need it.
Construction Insurance sets you up for success
To sum up, when you have construction insurance you are set up for success on your projects. You will have the protection you need to undertake new projects with confidence. At Farmer Brown Insurance we will provide you with the right coverage for your business. Call us on (888) 973-0016