Important Construction Insurance

November 8, 2017 Posted by kyu7

As an owner of a construction company your employees and your clients face different types of risks everyday on the job. Because of these risk Construction Insurance is required on every construction project. Insurance will provide coverage for material, risks, disasters, employees hurt on the job and even protect your business.

It is important to have the right coverage in case the unexpected happens. Below you will find just a few of the insurance coverage you need to protect your construction company.

Types of Construction Insurance:

Liability Insurance

Liability Insurance is designed to protect contractors against injuries, accidents, and property damage to third parties. As a construction company you are normally on someone else property doing a project. Liability insurance will cover you if an employee causes any property damage outside the construction contract. It will cover the clients loss and any loss you have gained as a result.

Also as a construction company you have a lot of moving equipment on job sites, you will also have clients and other people onto the job site checking progress. Liability Insurance will cover you if someone is hurt during the operations of your company. An example would be if the client is hit by a falling object and is injured.

Worker Compensation Insurance

Workers compensation is a system built to help companies pay for benefits of employees hurt on the job. Coverage will pay for medical benefits, lost wages, and rehabilitation cost related with getting the employee back to work.

Not all states require companies to have Workers Comp insurance. Most states require that if you have 1 or more employees that you have coverage on each employee, full-time, part-time, legal or illegal.

Even if you are not required to have Worker Comp Insurance it can be a valuable part of your company’s risk management. If you don’t have the right coverage and an employee is injured on the job then you are liable for all the costs. With the way medical costs keep going up nowadays you can imagine the effect it can have financially on your company.

You want to speak to a broker certified in your region to make sure you have the right coverage to keep your company protected.

Contractor Bonds

Contractor Bonds act as a guarantee between the client and the construction company that the project will be completed to satisfaction without any financial hardship. More and more private companies are requiring certain bonds in order to do business with them. Most require that you have a bond just to place a bid on the project.

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