Did you know new residential construction spending is projected to be approximately $586 billion in the US in 2023? These figures bode well if you are a builder.
But, this doesn’t mean it will all be plain sailing. This industry is one of the highest for third-party claims. You could get sued for property damage or bodily injury. Unless you can bear this financial risk, your business won’t be getting a share of that $586 billion. However, if you can pass the financial risk on, you could be all set.
In this case, a Contractors Liability policy will have your back. Read this great guide on the low down to property damage insurance.
Why you need insurance as a builder
Your business will be protected from lawsuits or damages made by claims during the construction process by having the correct insurance for your industry in place. It’s as simple as that.
So, what policy do I need?
Your go-to is Contractors Liability insurance. It provides coverage for the following instances:
Property damage: Protects you if your company damages a customer’s property. Something as simple as a brick falling and chipping tiles on the client’s floor, and your business is covered.
Injury: Protects you against injury claims by a third person by way of paying for medical expenses and other compensation. It does not apply to your employees. For this, you require Workers Compensation.
Completed products: Protects you against claims related to services you have completed or products produced. If you finished building a garden wall, for example, and part of it fell down a day later and injured the owner, your property damage insurance would kick in.
Harm reputation: Protects your business in the event of claims of slander, libel, and wrongful eviction. Something as simple as taking a photograph of the client’s home without their consent and using it for promotional purposes – and the client sues you.
Advertising mistakes: Protects your business in the event of a claim that you have infringed on others copyrights in your business’s advertising.
The costs involved
The type of work your business performs in the construction industry will directly impact your premiums.
For example, property damage insurance for a high-risk industry, such as roofing, will carry a cost of around 2% to 3% of revenue.
Another factor in determining your premium is your claim history. If you have not claimed in the last 5 years, your premium will be lower.
Reap the rewards
For many contracts, especially government and big businesses, it is required to provide proof of Contractors Liability insurance to be accepted for the project.
Better yet, property damage insurance will provide you with a sense of security in the knowledge that your business is protected.
We have you covered
Our agents at Farmer Brown Insurance are standing by to provide you with the most up-to-date and comprehensive property damage insurance advice. Let us take care of all your business insurance requirements. So, you can get on with your business. Call Farmer Brown Insurance at (888) 973-0016 today. We are here for you.