Being in the construction industry comes with a lot of risks, such as accidents and injuries, business property damage, delays and disruption to operations, liabilities, and also financial losses. These are the reasons why it is crucial to get insurance for a construction company.
Learn more about the types of business insurance construction companies need and find out how various types of commercial insurance policies protect construction businesses against unpredictable situations!
What is a Commercial Insurance?
Commercial insurance is a type of insurance that helps protect businesses from financial losses in the event of accidents, natural disasters, theft, and other types of losses.
This type of insurance is designed to protect businesses against the common risks that come with day-to-day operations. Some commercial insurance policies cover specific types of risks, while others are more comprehensive.
Due to the variances in business situations and needs, commercial insurance comes in different types, such as property insurance, liability insurance, business interruption insurance, and workers compensation insurance.
The type of insurance policy a business needs depends on the nature of the business, the risks it faces, as well as the amount of financial protection it needs.
Why Do Construction Businesses Need Commercial Insurance?
Commercial insurance protects businesses against the risks that come with operations. Considering the numerous risks that come with operating a construction business, many firms obtain policies as protection.
Check out the various benefits that commercial insurance provides construction businesses below!
Property Damage
In the field of construction, where you rely on your tools, equipment, and vehicles to operate, it's inevitable that accidents happen and you end up damaging your assets.
As such, construction businesses could use property insurance that can cover the costs of repairing or replacing damaged property. This is a type of commercial insurance that covers the cost of repairing or replacing the business's own property, such as tools, equipment, and vehicles—if they are damaged or destroyed.
Whether your tools or equipment get damaged by fires, natural calamities, or on the job, having property damage insurance with the right amount of coverage is essential.
Seek the help of reliable insurance providers in determining the level of coverage you need for your property damage insurance policy—this lets your construction company operate without worrying about how damages to its assets can halt operations or even put your business into financial debt or bankruptcy.
Liability for Injuries
There's a lot of manual labor and potentially injurious situations involved in construction. Hence, these kinds of businesses could use liability insurance to help protect them against liabilities over injuries that happen while on the job.
General liability insurance is a type of commercial insurance that covers the cost of defending against and paying settlements or judgments for injuries or the cost of medical treatment, lost wages, and other damages if someone is injured on the construction site.
No matter how hard construction businesses try to prevent bodily injury through safety protocols and best practices, accidents still happen. Having an insurance policy to protect your business against claims of negligence is key to protecting your finances as well as your reputation.
Workers Compensation
Accidents happen, more so in construction than in most industries. As such, getting workers compensation insurance comes in handy to protect both your construction business and your employees against potential injuries or sickness while on the job.
Workers compensation insurance is a type of commercial insurance that provides benefits to workers who are injured or become ill on the job. It covers the cost of medical treatment, lost wages, and other expenses that result from a workplace injury or illness.
Typically required in most states, workers compensation insurance protects a construction business against the financial burden of having to shoulder the cost of compensating workers for injuries or illnesses suffered on the job out of pocket.
Similarly, this type of insurance also protects the business' workers by providing them compensation benefits in the form of medical treatment, lost wages, and so on. As a result, this insurance may help improve the business's reputation, as well as attract employees, and improve worker productivity, job satisfaction, and employee retention.
Get Commercial Insurance for Your Construction Business
Don't let an accident halt your operations or put your construction business into financial ruin. Get the right business insurance construction for your company with the proper coverage.
Reach out to our team and leverage our ten years of expertise on the various business insurance construction companies need to help you find an entire solution for all your construction insurance and business needs.
To get a free customized quote, contact us at 888-306-7887 at Stampede Insurance Services today!
