Due to the type of work performed on a job site, the construction industry is one of the most dangerous industries to work in. To own a construction business, you have to understand the inherent risk and protect yourself in advance.
The Risks in Construction
There are several kinds of risk at a job site. Risks include:
- Damage to your equipment and property
- Injuries to third parties
- Damage to rented space
Your business could suffer lawsuits based on false advertising, copyright infringement and libel or slander. Not only should you take responsibility for your actions, but your employees actions on the site.
The Solutions to Your Risks
The solution to the inherent risks is insurance coverage. Most owners in the construction business have a builders liability policy and a general liability policy. The builders liability policies cover your equipment, property and other equipment if damaged due to theft, vandalism, fire and more.
General liability, on the other hand, protects you against lawsuits. General liability covers injuries that occur on your property and damage to the build site if it belongs to a third party.
Owning a construction business comes with a lot of responsibility. You have to recognize the inherent danger and plan for the worst. General liability insurance construction business owners use is your best shot at protection.
The construction industry provides a steady source of income for everyone involved, from land developers to day laborers. Like any great business, however, construction is not without its inherent risks. Luckily, insurance companies are aware of what those in construction face, and offer many types of construction insurance policies to protect from financial loss.
Most states require workers’ compensation to protect employees from on-the-job injuries. Depending where you live, there may be options available to lower your premium.
General liability is invaluable in the case of claims made by the general public. It covers their personal injuries and loss of property, as well as legal fees associated with claims related to advertising issues.
Professional liability, also known as errors and omissions, protects your company’s reputation. It covers claims of negligence and breach of contract by helping you pay to defend yourself in court.
Cyber insurance is becoming increasingly important in construction. This inexpensive policy protects software and data against hackers and other cyber attacks.
With so many types of policies available, you can feel safe knowing that your business is protected from unforeseen circumstances. Talk to your insurance agent to choose the combination of policies that best fits the construction projects you deal with most often.
Whenever starting a construction project, builders risk insurance in one of the most essential protections you can establish. However, it is also one of the most misunderstood forms of coverage, given the unique design of coverage terms to meet a specific projects needs. However, if it is properly constructed, it can be more of the most powerful tools in a risk management strategy.
Also known as course of construction insurance, the coverage plan will have an effective date that is arranged by the insured but an expiration date for when construction is completed. The property must be ready for use in order for the policy to be terminated. During the course of the project, this coverage would protect from losses that could be incurred from hail, lightning, fire, explosions, vandalism, theft, or hurricanes. Depending on the location of the project, earthquakes, wind, and flood may or may not be included as well. Standard exclusions typically list normal wear and tear and acts that involve employee theft or faulty planning, executing, and design.
Anyone with a financial interest in the construction project, whether owner, lender, contractor or subcontractors, may wish to have this additional coverage added to the contract or to a standard BOP policy. Lenders may require it, should the project be financed. Having the wrong kind of coverage is just as damaging as not having coverage at all. Guard your exposures through a builder’s risk plan.
A business that centers around construction can offer a number of unique risks to business owners. As mentioned by recent statistics, this industry is one that tends to invite a lot of risk to employees and owners alike. All it takes is for one small thing to go wrong and businesses can be looking at expensive and complicated legal struggles. Luckily, proper insurance coverage like OCIP can make a world of difference to your feelings of security.
Focus on What Matters
As reported by Haughn & Associates, an Owner Controlled Insurance Program is one that might be able to greatly benefit business owners in the construction world. When you are faced with wrap-up procedures, you might assume that the worst of a job is behind you. Unfortunately, someone can still get injured or damage property during this period. Sadly, most insurance plans don’t cover wrap-up. By taking charge of your policy with an owner-controlled option, you can include all of the options that meet your needs. Benefits of this program include:
- Improved workplace safety
- Control over claims and coverage
- Reduced litigation
Stay Covered Always
In order for your construction business to stay successful, you need to guard it against the unknown. The best and most effective way of achieving this goal is by taking out an appropriate insurance plan that keeps you protected in an array of situations.
Working in the construction industry can mean many different things. Whether you are an independent contractor or work for a large building firm, it’s essential to keep your risks low by purchasing the right construction insurance in CT. With the right insurance, you can operate your business without worrying about financial setbacks caused by accidents or errors.
How This Is Achieved
You can ensure that you have the right construction insurance in CT by meeting with an agent to discuss your specific business needs. Through the process of an in-depth assessment of your business site and complete risk analysis, your agent can help you to determine exactly how you need to be protected and for how much money. Your construction insurance package should be built specifically for your business and the unique needs it faces.
Construction Insurance Coverage
Regular business insurance is not enough in the construction industry. This industry faces unique challenges that require you to have some of the following coverage in place to protect you and your company.
- Builders Risk
- Errors and Omissions
- Workers’ Compensation
- Environmental Liability
- Review of Subcontractor Certificate
These are just a few examples of the unique insurance needs necessary for each construction business to function at full capacity. With the inherent risks of your profession, protection from the right insurance coverage is an absolute necessity to keep those risks as low as possible.