What Insurance Should a Construction Contractor Have?
Every business is unique and may need specialized insurance that helps mitigate potential risks and offers financial protection in the face of unforeseen circumstances. This is especially true for construction contractors, who face significant hazards due to the nature of their work. Construction contractors insurance may offer financial protection against lawsuits, injuries, damage to equipment and other risks. Without insurance, construction contractors may have to pay for costly incidents out of pocket, impacting their finances and reputation.
What Does Construction Contractors Insurance Cover?
Construction contractors insurance policies include a wide array of coverage. Coverage details may depend on a business’s size, its location, the type of work being done and any legal requirements. Here are some common types of coverage included in construction contractors insurance:
- General liability insurance may help financially protect a contractor against third-party claims of bodily injury, property damage or personal injury caused during the contractor’s work or operations. It might cover legal fees, third-party medical expenses, settlements or judgments resulting from such claims.
- Workers’ compensation insurance may help provide benefits to employees who suffer work-related injuries or illnesses. It can cover medical expenses, lost wages, disability benefits and rehabilitation costs. This coverage may also financially protect an employer from lawsuits filed by injured or ill employees.
- Commercial property insurance may help financially protect a contractor’s physical structures (e.g., buildings and garages) against covered risks (e.g., fires, theft, vandalism or severe weather). In particular, it might cover the cost of repairing or replacing damaged property.
- Contractors equipment insurance may help financially protect contractor-owned equipment and machinery from damage, theft or loss, both on and off the construction site. It can cover tools, heavy machinery, vehicles and other equipment.
- Builders risk insurance may help provide financial protection for a construction project in progress. It might pay for any damage to the structure, materials and equipment caused by covered risks.
- Professional liability insurance may help financially protect a contractor who provides professional services or advice. It may cover claims of negligence, errors or omissions in the design, project management or consulting services provided.
Additional coverage may be available that fits construction contractors’ unique needs. An insurance agent can provide additional information regarding options, exclusions and limits.
How to Get Construction Contractors Insurance in Grand Junction, Colorado
Construction contractors can contact Home Loan Insurance to customize their coverage options, limits, endorsements and exclusions to fit their operation-specific risk exposures.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.
Categories: Construction Insurance