Throughout a project’s development and construction phase, property owners, developers, and contractors must acquire various types of insurance to protect their projects. Construction insurance is a business insurance that enables you to manage risks and comply with legal requirements. When finding the appropriate insurance options, BTC Insurance may have the solutions.
Business Insurance for Common Risks in Construction Sectors
The construction industry is a risky sector, with over 46% of fatal falls, slips, and trips occurring in 2021. It accounts for the most on-site injuries and fatalities out of all other sectors. Likewise, the costs can skyrocket to tens of thousands of dollars if a project goes awry. Some common risks include:
- Safety hazards
- Incomplete drawings
- Damage and theft to equipment
- Poorly written contracts
- Natural disasters
Many of the risks to a construction project can result in scheduling delays and disputes between parties. Good project management and comprehensive construction insurance can mitigate some of the risks.
You must also consider industry-specific regulations to comply with local, state, and federal laws. For example, contractors who work in Utah must carry general liability insurance.
Types of Business Coverage to Consider
Given the complex exposures within the construction industry, contractors must have broad protection, including various business insurance coverages and policies.
General Liability
General liability protects against claims of bodily injury and property damage. General liability policies often cover slander, libel, and copyright infringement.
Umbrella Liability
Umbrella or excess liability offers the same protections as general liability. However, excess liability helps cover claims that exceed your primary insurance’s limits, including catastrophic claims.
E&O Coverage
E&O, or errors and omissions insurance, protects contractors against financial losses connected to errors, mistakes, or negligence claims. An example of an E&O claim can include the installation of defective products.
Commercial Auto Liability
Many construction companies own their vehicles or have contractors who use their own cars for work-related tasks. Commercial auto liability covers the cost of medical bills, damages, and other expenses associated with an accident.
Tailored Coverage to Address Unique Needs
When providing comprehensive business insurance to contractors or project management companies, most will need tailored coverage. Most companies have different hazards, meaning they may require additional coverage. For instance, contractors who regularly work with hazardous waste may need pollution liability coverage, whereas others will not.
A risk assessment allows insurance brokers to determine the company’s needs and to provide comprehensive coverage. During the risk assessment, brokers will identify project-specific threats on a construction site. They will evaluate each risk factor to decide the likelihood of an incident and the impact the incident could have. When you work with knowledgeable brokers, you are more likely to receive fair pricing for the insurance coverage you need.
Business Insurance for Contractors Within the Construction Industry
The construction industry remains a sector with some of the most significant risks. Accidents, natural disasters, and project delays can affect your profit margins by setting you up for expensive claims against you. There will always be obstacles to overcome, but business insurance serves as a way to protect your company.
About BTC Insurance Services
Founded in 2011, BTC Insurance Services has proudly served Utah businesses with comprehensive and custom-tailored insurance coverages for a decade. We pride ourselves on fostering long-term client relationships with a personalized and hands-on approach and have established a reputation built on quality and transparency. For more information about our products and services, we invite you to contact one of our reputable agents today at (855) 944-3457 or send us a message here.
