What Types of Insurance Do Construction Companies Need?

Construction insurance generally refers to a combination of different types of insurance that may provide crucial funds following job site accidents, equipment damage or project delays.

Essential Types of Insurance for Construction Companies

Construction businesses usually need multiple types of insurance to help mitigate various risks. Here are some important types of coverage:

• General liability insurance may compensate for third-party injuries or property damage if your business is at fault.
• Workers’ compensation insurance may pay for medical treatments and help replace lost wages if an employee suffers injuries or becomes sick due to their job. It may also pay your legal fees if affected workers sue your business.
• Commercial auto insurance may reimburse medical and vehicle repair expenses after an accident involving your company vehicles.
• Builders risk insurance may cover structures being worked on, as well as materials, fixtures and equipment stored on-site while a project is in progress.
• Professional liability insurance may pay legal fees and damages related to claims of errors, oversights or delays in professional services.
• Commercial property insurance may cover damage to offices, warehouses or other on-site business property.
• Commercial umbrella insurance may add an extra layer of liability coverage beyond the limits of your other policies.
• Tools and equipment insurance may prevent financial losses due to theft or damage of valuable machinery being transported to, or used on, construction sites.

What to Consider Before Buying Construction Insurance

Before buying construction insurance, consider your budget and various requirements that might affect your insurance needs. Also, consider the types of projects you handle since different jobs carry different risks. Check your contracts for any specific insurance requirements. Your employees’ safety risks and the value of your equipment should also be taken into account.

Contact Our Agency

Sonoran Insurance LLC understands the risks construction businesses face. Our agents can assess your needs and recommend appropriate coverage. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.