Insurance Policies Every Construction Team Needs


Picture of Construction Workers

Every business owner needs the right insurance coverage. It’s not just another expense on your to-do list, insurance is vital protection for you, your company, and your employees.


It’s a reliable investment that will protect your business against significant financial losses or damage to reputation. Insurance is also usually a legal requirement, so it’s essential to have the right coverage.


Insurance plays a huge role in businesses across industries, and the construction industry is no exception. Working in this industry can be risky. Employees can get injured or sick while at work, or accidents could leave your projects sidelined.


Even with extensive safety procedures or guidelines in place, accidents can still happen. Construction teams face their own share of risks that they need to be aware of. And each risk requires specific coverage.


What are the right policies construction teams need to protect customers, clients, and employees? Read on to learn more about insurance policies that are essential in the construction industry:


General Liability insurance


This is a policy every construction company should have in their portfolio. It is designed to cover a range of third-party liabilities such as damage to property, tenant liability, and bodily injury.

For example, if someone gets injured while on your business’ property, or, if your employees damage something while working on a client’s property, General Liability insurance will cover the expenses such as medical costs and payment for damages.


Commercial Property insurance


If you have a building, office space, or physical property that you use for business operations, consider purchasing Commercial Property insurance. It protects not only your office space but also other business-related physical assets such as office equipment, furniture, and documents.


For example, if there’s a fire in your office this policy will pay for the expenses associated with replacing those lost or damaged assets.


With the onset of the COVID-19 pandemic, many physical office locations are closed, but that doesn’t mean you should forego or cancel this policy. It’s a common misconception that homeowner’s policies will cover all property damage. But, if you’re working from home your personal insurance policy will not cover damage to property used for business purposes--such as a home office.


Business Owners Policy (BOP)


Did you know that you can bundle policies together? For instance, consider purchasing a Business Owners Policy, which is a combination of General Liability insurance and Commercial Property insurance. It is a cost-saving strategy compared to buying two policies separately.


Workers Compensation Insurance


This policy is absolutely essential for construction teams and is often legally required by state authorities. What if a member of your construction team gets injured or sick as a result of doing their job? This policy covers the medical and rehabilitation costs as well as the salaries lost in case they need recovery time and cannot go back to work.


For construction companies, works compensation premiums can be quite high. Make sure you ask your insurance provider if they offer premium discounts for strong safety records, or if they offer pay-as-you-go premium options.


Cyber Liability Insurance


Today, nearly every company conducts business online. For example, do you accept electronic payments or maintain a database of customer’s data? If so, then you should consider purchasing a Cyber Liability policy.


A single claim associated with a data breach or identity theft can mean damage to reputation and huge financial losses. Cyber Liability is the only commercial insurance policy that can pay for damages associated with these claims. Without this policy, you’ll be left paying for legal damages and settlements out-of-pocket.


The bottom line


Construction is an inherently risky industry, between worksite accidents or property damage there’s a lot that could go wrong. Make sure you’re adequately protected with the right insurance coverage to keep you and your team safe.


If you’re having trouble deciding which policies are right for you, make sure you reach out to an insurance broker that has the experience and expertise in risk assessment for construction companies.


By Emily Lazration, CoverWallet

Emily is the Content Marketing Specialist at CoverWallet, a tech company that makes it easy for businesses to understand, buy, and manage commercial insurance online. She has written for several outlets including Inc., Ooma, and Fundera covering small business news and advice.


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