How to Lower Your Risk
Construction is one of those industries where anything and everything can happen. If you own a construction company, you need to know about the different types of insurance coverages available to you. These can protect you from unforeseen accidents and issues that would otherwise end up costing you a lot in the long run.
Builder’s Risk Insurance
When you are working on a construction project, any number of things can go wrong. Instead of worrying about every possible surprise, it’s better to know that you’re covered. Builder’s Risk Insurance protects you if there is a sudden storm that washes away weeks of work. Whatever happens, you’ll be reimbursed for damages and losses due to unexpected events.
Workers’ Compensation Insurance
In the construction world, this is one of the most important types of coverage. Often referred to as “workman’s comp,” it’s basically liability coverage for your employees. It will cover the cost of lost wages the employee would have earned while he or she is out with an injury or illness. It covers medical expenses if the employee was injured on the job at the construction site, or if the employee fell ill due to something at the site. Workers’ Compensation Insurance will also cover any legal fees you may incur if the employee decides to file a lawsuit against your company because of their on-the-job injury or illness.
Please don’t underestimate the importance of Workers’ Compensation Insurance. You’d be surprised at how quickly legal fees can pile up if you should be involved in a lawsuit. You would also have to take time away from work to go to court, so it’s hard to estimate the costs.
Preventing Employees’ Injuries On the Job
There are things you can do to lower the risks and expenses associated with on-the-job accidents. Conduct safety trainings, and make sure all employees are well-versed in safety protocol. Things like safe machine operation, safe lifting procedures, communication about hazards, waste management, asbestos and other airborne debris awareness, hazardous material handling and other issues that may apply to your construction business.
Check out the site first before you begin work. Assess the potential dangers and make sure employees know what they’re doing at a particular site. Some places have more of a danger of asbestos and particulate dust, which can cause serious respiratory problems. Make sure that anyone who works in such an environment wears proper safety gear, from dust masks and eyewear, to ear muffs or ear plugs if an employee will be exposed to loud noise for extended periods of time.
Commercial Auto Insurance
You’ll need to get this insurance if you have employees driving a company vehicle—in case of major accidents that destroy work-related tools and equipment, bodily injury to employees and other situations. This coverage will enable you to purchase a new work vehicle or cover the cost of repairs.
Liability Auto Coverage for contractors and construction professionals will protect your company if one of your employees causes an accident. This coverage will only cover an accident if the employee was doing work-related traveling. It will also cover expenses of a third-party who was harmed during the accident. It will cover medical and legal expenses, as well as the cost of repairs.
Physical Damage Coverage will cover you if your company vehicle is damaged by vandalism, a natural disaster or if your vehicle is stolen.
If you have a smaller company, you may want to consider adding Medical Insurance Coverage to your Commercial Auto Insurance policy. Sometimes the rising costs of medical expenses can be too great, and this will offer you some extra protection.
Uninsured Motorist Coverage will protect your company if your employees use their own personal vehicles for company business. If they get into an accident and their auto insurance isn’t adequate, you may be responsible for paying for any damages not covered. If they have no auto insurance, you might be held responsible for ALL costs!
Business Owners Policies
As you shop around for insurance relating to contractors and construction professionals, be sure to check out a Business Owner’s Policy. If you should get this policy, see if you can customize it to address the unique concerns and issues of a construction company.
For more information on insurance for business owners, please contact Zawada Insurance Agency. We work to give you comprehensive coverage at a competitive price.
Zawada Insurance Agency, Inc. is a family-owned and operated independent insurance agency, located in Worcester, Massachusetts, serving central Massachusetts and beyond.