The large number and wide array of employees and contractors involved in the operation of a construction business create extensive risk exposure. With the right coverage, construction companies can significantly reduce the financial risks associated with construction sites and the people who work in them and live around them. These risks include:
- Damage to company property or equipment
- Injuries or property damage caused to others not affiliated with the company
- Income loss due to business interruptions such as fires or severe weather
- Employee injuries that occur on the job
What are the critical components of construction insurance?
Construction insurance usually consists of multiple policies working in concert to protect a business. Failing to invest in the appropriate policies can make the difference between a profitable project and a losing investment. Further, insufficient coverage can bring about situations that damage both reputation and credibility. Some of the most common construction coverages include:
- General liability insurance. This provides coverage if a company injures an individual or damages another person’s property.
- Professional liability insurance. Sometimes called errors and omissions insurance, this provides coverage for if a client files a claim related to consultation services, advice, and so on provided by a construction company.
- Loss of income insurance. This coverage accounts for the loss of income due to business interruptions.
- Workers compensation. Laws often dictate that construction companies invest in this type of insurance. It provides coverage in the event that an employee is injured on the job.
- Builders risk insurance. This functions like construction liability insurance. This type of insurance encompasses any on-site damage. Some policies include tools and materials as well.
- Commercial vehicle insurance. If a construction company uses trucks or vans for business purposes, they need this type of insurance. It provides coverage in the event of personal injury or property damage caused by company vehicles.
Investing in the right type of insurance is vital to maintaining a successful construction company. However, navigating which policies your company needs and how much coverage to invest in can be difficult. The Reilly Company Group can help you determine which policies are best for your business. To learn more about utilizing construction insurance to reduce risk, contact us today.