4 Must-Have Insurance Types for Construction Projects

Insurance for Construction

The construction industry has been bustling with activity. Well, it’s all because of job sites and inherent risks. The construction industry needs larger machinery and skilled workers. And, with such requirements, third-party damages, injuries, and litigation are sure to increase.

Although advanced machinery and technology are influencing businesses, it’s adding risks also. But, with the right insurance type, you can negate these risks. These will not only ensure workers’ safety but will increase your company’s reputation.

The secret to success is good leadership, and good leadership is all about making the lives of your team members or workers better. -Tony Dungy

Some of the must-have insurance types for your business are:

  • Professional Liability Insurance

Mistakes are sure to occur while undertaking any professional activity. But, with professional liability insurance, you can reduce these errors. Yes, whether these are the ones in value engineering or designs, you’re covered. It also covers mistakes that impact the financial ability of a project. Note that this insurance doesn’t cover the rework cost but has coverage for error liability only!

  • General Liability Insurance

Every business undertaking must invest in general liability insurance. This recommendation is the most useful in the construction industry.

It is because it protects your company against any liabilities. With construction project insurance, companies provide injury claims and medical insurance. General liability covers the business from any claims that arise out of damages. Improper installation of sealed doors or faulty plumbing can be the possible reasons.

  • Pollution Liability Insurance

Pollution liability is what occurred to you. Yes, it provides coverage if you’re liable for a pollution incident occurring at a job site. Bringing fuel tanks for refueling your equipment increases potential pollution risks.

The general liability policy does not cover pollution liability. But, you still can add an endorsement to provide limited coverage. These pollution endorsements provide a lesser range than the standalone pollution liability coverage. Thereby, it’s vital to determine the level of risk to ensure your coverage.

Ask your risk advisor some questions. Ask if you can blend pollution liability with general insurance. Will it be a right fit for your construction business? After all, you wish to avail the most significant benefits.

  • Workers’ Compensation Insurance

Most states use worker’s compensation insurance to protect their workers. This coverage helps with medical expenses or lost wages resulting from job-related injuries.

Although states dictate the premiums, you can still find out how to reduce the work comp costs. You can lower your experience modification factor. All you need to do is improve the worker’s safety and lessen the severity of injury claims.

The Bottom Line

Every industry faces some risks and requires protection. And, the project construction industry is no different. To combat increasing threats to worker’s health, many other layers come into being. After all, it’s about worker safety, in the end.

Are you still confused about the right kind of insurance for your construction business? If yes, then reach out to a strategic risk advisor. He/she will help you curate an apt insurance coverage for your business.

 

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.