Construction insurances are required for nearly every construction project, and in many cases, particular coverage is required to participate in the bid process. Construction policies can provide coverage for material, risks, natural disasters, employees and even your own business. Given the frequency and magnitude of the damages that can occur on construction projects, it is critical for construction professionals to select the right type of coverage. And what is not in the policy can be just as important as what is. Fee's risk advisors can help you understand your particular risks and find creative cost-effective solutions that meet your unique needs.
Protect yourself from risk.
Your construction insurance can make the difference between your company turning a profit or losing money on a construction project. It's important to make sure you have adequate and quality coverage. The specific coverage you choose will depend upon a number of factors, including the size of your company, the number of workers you employ, and the type of work you perform.
Some of the coverages you may want to consider include:
This critical form of coverage cover your financial risk if you are responsible for bodily injury or property damage to others. If you work in construction, general liability insurance is required in order to get a contractor's license in most states.
Lost of building materials
You can think of this as construction liability insurance. It provides coverage specifically for on-site property damage of a site under construction. This coverage varies by company, but may also cover the construction materials on site, prior to installation. The coverage limit is based on the value of the structure when completed.
Errors and Omissions
If you provide consultation, design work or advice as a part of your professional services, this form of liability coverage can help protect you. Also known as "errors and omissions" insurance, this coverage is designed to cover potential claims due to a loss that a client may experience from your services.
Employee Accidents and Injuries
Workers’ compensation insurance helps protect your employees and your business from the costs of workplace accidents and injuries.
Kansas requires workers’ compensation insurance for most employers—see rules here. Those statutes determine the amount of benefits an injured employee is entitled to, what types of injuries are covered, and how medical care will be delivered. In general, workers’ compensation insurance covers the costs of medical care for the injured worker, as well as income replacement if they cannot return to work for a while. Workers’ compensation insurance may also provide death benefits if a worker is killed at your facility.
Coverage For Small Companies
A business owners policy, or BOP, is appropriate for some small business owners. If you have a small construction business, this kind of combined policy may be right for you, and may provide much of the construction insurance you need at an affordable rate.
Your business may qualify for a BOP if you generate less than $5 million in sales and have fewer than 100 employees. Your policy will typically combine the following coverage types:
General liability: Normally covers up to $1 million of injury to others or damage to their property.
Medical payments: Covers injury to others on your business property.
Property damage: Covers your business property, such as equipment, for loss or damage.
Business income: Covers loss of income for up to 12 months due to business interruption.
Equipment breakdown: Covers mechanical breakdown and other causes of equipment malfunction.
Rental vehicle coverage: Covers loss or damage to vehicles you borrow or rent.
Loss of Income
Covers loss of income that results from insured a business interruption, up to 12 months
Commercial Vehicle Damage and Liability
Commercial auto insurance typically covers cars, trucks, trailers, vans and other vehicles designed for use on public roads. Only a business auto policy can provide proper protection for vehicles being driven for business purposes.
You can customize your policy to cover:
Vehicles that your business owns
Vehicles that your business owns, leases, or hires
All vehicles that are used for business purposes, including those that the business does not own, lease or hire (e.g., personal vehicles that are driven for business purposes)
You can list each vehicle on your policy and carry different coverage for each depending on the vehicle’s characteristics and the coverage you need for it.
Construction companies like yours often store information about employees, contractors and customers, including Social Security and credit/debit card numbers. Data Breach Coverage helps pay the costs of notifying impacted individuals such as customers and employees, managing public relations, good faith advertising, and more if personally identifiable information is lost or stolen.