The sector of concrete contractors in the United States represents a multi-billion-dollar worth industry with around 80,000 companies and near 250,000 employees. Therefore, it is not a surprise when we hear about how many lawsuits are there linked to this sector. The construction industry is huge, and having all of the permits and valid documentation is crucial in terms of avoidance of potential lawsuits.
The contractor sector, along with other parts of the construction industry, is often subject to lawsuits related to injuries and damage of property. Therefore, every company in this branch should have a proper Concrete Contractor Liability Insurance to avoid issues with false claims.
4 Good Tips to Help You Choose Contractor Liability Insurance
If you own a company in this sector, choosing the right liability insurance is crucial because it can save you a lot of money from potential compensations that you need to pay in case you lose a case in court. Also, there are companies like Contractors Liability where you can find more information about the right type of insurance and calculate your monthly fees. Whether you’re new to the industry or your business has been up and running for years, our insurance advice is easy to follow.
1. Start with Commercial General Liability
Commercial General Liability insurance represents a basic type that every concrete contractor should have from the starting point. The feature of this policy is that it can cover most cases related to injuries of third parties, workers, and damage of property caused by your work. Also, since this type of insurance can cover you in many situations, it is not a surprise that most clients would demand from you to have at least a certain level of general liability. Moreover, clients will also demand to be included in the insurance in the same way as subcontractors are adding contractors in the policy. When it comes to the prices, the average cost of general liability is around $1,000 per year, and it can cover the amount of over $1 million.
2. Get Commercial Auto Liability if You Use a Car for Work
Like with the basic car insurance, vehicles that you are using for your work also must have a proper policy that can cover the amount in the case that they were stolen or in case of an accident. Concrete contractor businesses and other companies that have a lot of vehicles in their fleet should get commercial auto liability insurance because that is the only way to use them legally for your business. Moreover, most of the vehicles in this sector are big trucks capable of carrying big loads, and they require higher levels of liability coverage. With this type of insurance, you don’t need to worry about accidents made during both road driving and work.
3. Workers Compensation if you have an employee
This type of insurance is mandatory in most states from the moment when you hire your first employee. Worker Compensation insurance can cover expenses related to compensations to workers in the case of an injury or illness caused as a result of their work. Considering how expensive private treatments are today, both the owner of the company and the employee can be more relaxed since this insurance can cover all the expenses. Moreover, you don’t need to worry that some of your employees will sue you in case of an accident because this insurance will cover your defense fees as well.
4. Protect Your Equipment by Getting Commercial Property Insurance
The great advantage of investing in Commercial Property insurance is that it can cover your expenses related to damage made to physical structures, machines, and equipment. Considering the prices of most equipment and machines on the market and the high possibility of failures during work, you can save a lot of money by choosing this type of insurance for your company. On the other hand, you have to be aware of the fact that this insurance is valid only in case there were some issues with your machinery and tools during work. If there is a situation where your property is damaged during transit, this insurance will not cover it. However, you can invest in additional insurance that can protect your property and tools in all other situations as well.
If you are unsure of what insurance your concrete contracting business requires, speak to your insurance agent. If you already hold insurance policies for your company, don’t forget to update them as your business grows. If you need basic liability insurance for your concrete business, the average monthly fees will be around $50, and that amount can cover up to $2 million. The main advantage of investing in this type of insurance is protection from potential lawsuits and false claims by employees, clients, and third parties.
According to regulations in many states, investing in this type of policy is mandatory. In these states, there is no chance for any concrete construction company to get a license. Moreover, clients are aware of the importance of having liability insurance. Therefore, there is a high probability that many of them would refuse to collaborate with your company in a case that you do not own this insurance. The main reason for that is the fact that some issues that came up as a result of your work for the client might trigger a lawsuit for him as well.
Therefore, having this insurance will get you more clients and assure your property and workers during the project. There is always a risk of human error, malfunctions, and other issues, and this method is the best to avoid losing a lot of money on compensations and losing lawsuits in the court.
Every type of business should be covered with proper insurance. However, before you decide which program to choose in the insurance company, be sure that all of the important factors related to your business are going to be covered. Besides these 4 types of liability, there are also product liability, business owner policy, liquor liability, professional liability, and surety bond. You have to be aware that there is always a chance for various types of incidents on these types of projects and buying proper insurance is the best way to protect your business.