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With almost 80,000 businesses and around 244,000 employees, it is not surprising that the US concrete contractor sector is a multi-billion-dollar industry. As such, firms in this line of work are attractive targets for frivolous lawsuits.
We live in a litigious society, so lawsuits are the norm. Can your excavation company afford to pay claims for bodily injury or property damage? These can run into the millions.
4 Good Tips to Help You Choose Contractor Liability Insurance
If your business operates in this industry, there is no question that you must have the correct liability insurance to fall back on.
Whether you’re new to the industry or your business has been up and running for years, our insurance advice is easy to follow.
1. Start with Commercial General liability
If there is one type of insurance that you must obtain as a concrete contractor, it must be Commercial General Liability insurance. It covers most of the liability exposures you will face in your line of work and is generally a great place to start.
Whether you are facing property damage or third-party injury, this policy covers you. In fact, many clients will need you to have at least a certain level of general liability before they work with you.
They will require you to name them as an additional insured in your policy just as you would require subcontractors to do the same for you.
2. Get Commercial Auto Liability If You Use a Car for Work
Whether you own one car in your concrete contractor business or a whole fleet of trucks, you should invest in Commercial Auto insurance. This is the only way you will be able to operate these vehicles legally.
As most trucks used in concrete construction are large and heavy-duty, you will need to obtain higher liability coverage levels. This ensures that you are fully protected should your vehicle be stolen while on-site or involved in an accident.
3. Workers Compensation if You Have an Employee
No matter what kind of business you are running, most states require that you obtain Workers Compensation insurance when you hire your first employee. This insurance covers any illness or injury your employees may acquire as a result of their work.
Both you and your employees will rest easy knowing that all medical expenses and lost wages will be covered. And your defense fees will be paid, should your injured employee try to sue you.
4. Protect Your Equipment by Getting Commercial Property Insurance
A point of concern for many concrete contractors is figuring out how to ensure their property, especially if they have a physical location.
This is where Commercial Property insurance comes in. It covers any damage to your business’s physical structures, equipment, and machinery.
However, this policy doesn’t protect your property while it’s in transit. In such cases, you are better off with Inland Marine insurance or Builder’s Risk.
Go with the Pros
If you are unsure of what insurance your concrete contracting business requires, speak to your insurance agent. If you already hold insurance policies for your company, don’t forget to update them as your business grows.