All businesses are exposed to some risk, but construction companies face an especially high level of risk. To protect against the risks they face, contractors need construction liability insurance. If you run a construction company, here’s a look at specifically why your company should have construction liability insurance and what types of protection that insurance should include.
As anyone in the construction industry knows, construction companies are exposed to many different risks. Workers themselves have a 3-in-4 chance of suffering a debilitating injury during a 45-year career (not to mention a 1-in-200 chance of having a fatal accident). On-the-job injuries are far from the only risk that contractors face, though. In addition to protecting employees, contractors must also:
Without adequate construction liability insurance, any of these risks could financially devastate your construction company. Stolen equipment could cost thousands or tens of thousands dollars to replace. A fatal accident involving a child who was climbing on a construction site might result in a six- or seven-figure sum.
(Contractors are often required to take reasonable measure that deters children from climbing on construction sites because sites are considered “attractive nuisances.” Attractive nuisances are things that kids may find interesting but are potentially dangerous.)
The sole reason that your company faces potentially insurmountable financial risks if it’s not insured should be enough of a reason to purchase construction liability insurance coverages.
If you need additional incentive to insure your construction company, there are two other good reasons to.
First, many governments require contractors to carry minimum levels of construction liability insurance. Your business may be subject to federal, state or local legal requirements, and operating without any minimum required coverage could result in a fine for or shutting down of your business.
Second, lots of clients will only hire contractors who carry a certain level of insurance protection. Clients do this in order to protect themselves — they’re more likely to be sued after an accident if the contractor they hired doesn’t have sufficient insurance. Thus, you may find your company’s potential work is greatly limited without an adequate insurance policy.
Because the risks that contracting companies face are diverse, contractors usually need several liability protections. Your company likely should have:
In addition to these, it’s important to also have property coverages, such as builders’ risk insurance. Property coverages protect the equipment, materials and other items that a contracting business owns.
When shopping for a construction liability insurance policy that contains all of these coverages, you’ll get the best protection at the lowest rate if you request multiple quotes from construction liability insurance companies. Once you have several quotes, you can compare them to see which one is the best policy.
In short, your construction company needs contractor’s liability insurance. Without insurance, your company will be:
To get quotes for construction liability insurance policies that meet all of your company’s needs, contact us at Marine Agency Insurance. We’ll get you quotes from construction liability insurance companies for policies that meet your company’s needs.
422 US Hwy 22 W, Unit 7
Whitehouse Station NJ 08889
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PO Box 125
Whitehouse Station NJ 08889
Toll-Free: 800-35-MARINE (800-356-2746)