To start a successful construction company, you will need different types of insurance to cover the costs of equipment and material damage, employee injury, and other financial responsibilities. In most cases, you will be required to take out specific insurance to legally run a business. Let’s discuss the insurances you cannot and should not go without to run your business more efficiently and effectively.
Contractor License Bonds
Contractor license bonds are important for ensuring your customers receive a completed construction project as agreed upon. They also clarify that the client is not responsible for the cost of any materials or labor required to finish a job. This essentially enforces accountability for all parties within the project’s building process and shows that your business is financially stable enough to take on the project. Consider adding supply, performance, bid, payment, and maintenance bonds to better run your business.
Commercial Auto Insurance
The state your business resides in will determine what type of auto insurance plan you need for your construction company. This coverage is necessary, especially when employees are working with heavy construction equipment day in and day out. If a worker is injured or there is an accident with one of the vehicles or machines, auto insurance can help cover the costs of this mishap.
Worker’s Compensation
All US states require a construction company to have worker’s compensation insurance. Employees are constantly at risk because construction sites can become dangerous; this type of coverage can help cover medical bills and other costs if workers injure themselves on the worksite. Without this type of insurance, your business might lose a lot of money if they need to foot a worker’s medical bill out of the company’s pocket.
Builders Risk Insurance
You only need this kind of insurance for the duration of a single construction project, meaning you may need new insurance for every job you take. This coverage will help pay for the materials and equipment you need to complete construction. This policy can also help cover damages to these items from heavy winds, lightning, or fire.
General Liability Insurance
General liability insurance is a must-have type of insurance you need for your construction company. This coverage is essential for protecting your business from lawsuits and claims from third-party individuals. When an incident occurs on the worksite, this insurance will cover the expenses without directly putting financial responsibility on your business.
Medical expenses, legal fees, and property damage can eventually stack up to be extremely expensive. Without insurance or coverage for your company, you may need to take money from other areas of your budget, which is never good. Protect your business and your employees by having the right insurance.
