Construction Insurance is powerful. It can mean the difference between your business being a great success or a failure.  Could your business survive a big liability claim? What about the replacement costs if you damaged a building you are working on?  In this article, we discuss the Construction Insurance you should have, and why you need it.


Essential Construction Insurance policies

At Farmer Brown, we recommend these 3 Construction Insurance policies: Workers Compensation, General Liability, and Builder’s Risk.  Here is a quick explanation of each:


1. Workers Compensation

Workers Comp provides coverage if employees are injured at work.  It covers the costs of medical treatment. However, this is not the only financial risk faced by employees, so it also covers loss of income as a result of not being able to work. In fact, the law requires that your company has Workers Compensation.


2. General Liability

General Liability protects your business from negligence claims. It could be for damage to someone else’s property, or if your actions cause bodily harm to another person. Moreover, General Liability will also provide coverage for the cost of your legal defense. Liability insurance is only for third party claims.


3. Builder’s Risk Insurance

Builder’s Risk is property insurance. However, it only applies to certain types of building projects. For example, coverage includes new buildings and the remodeling or renovation of existing structures. Hence, it is specialized coverage customized for your project. Typical coverage is for risks like these:

  • the theft of tools and equipment,
  • damage from vandalism,
  • property damage by accident or bad weather.


Why is Construction Insurance important?

Now that we have explained what Construction Insurance entails, we can look at why you should have it.


1. You can protect your business and investment

Protect your construction business properly with a combination of General Liability, Workers Compensation, and Builder’s Risk insurance. General Liability and Workers Compensation are required by law.  Furthermore, by adding Builder’s Risk insurance for each project you close the gaps in your coverage.


2. You stand out from the crowd

Builder’s Risk insurance shows clients that you are professional.  As a result, it gives them confidence that if something bad happens on-site, you will be able to address or fix it.  As such, your coverage reduces their financial risk. With this construction insurance clients know their project is in good hands. Moreover, this makes a difference between getting the job or not.


3. You gain peace of mind

Construction can be a stressful business.  Things 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.  However, there will always be things you need to manage and respond to on your project. Thus, with Construction Insurance 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.  As a result, 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

Written by: John Brown
John has more than 25 years of experience in the insurance industry. He grew from a star insurance producer to owning one of the largest agencies in the country; he's a reference regarding contractor's insurance, commercial insurance, and builders' risk insurance.