It is important to know that every sort of construction business requires proper insurance. The main reason for that is the protection of your equipment and workers, along with the protection from risks, damage of the property, and other potential issues.
Also, people interested in hiring construction companies are aware of the dangers, and they will always check whether you have proper insurance before they hire you. In that matter, you should learn more about the selection of insurance policies required for your business.
In case that you are working in the roofing business, you will need general liability insurance, along with some other forms as well. You can visit businessinsuranceusa.com to read more about this type of policy. In this article, we are going to introduce you to the main features of this insurance policies required for this business.
What Types of Policies to Choose?
Since you are operating in sensitive ambient and you have workers and equipment, you will need several types of insurance to protect your assets. The most common form is general liability, which serves as protection in the case that someone gets injured during the project.
This is policy is especially related to people who are not working with you, like neighbors, passengers, and others. For example, if some part of the construction fell of the building while you are working, this model will cover the expenses for potential injuries.
There is also the protection of commercial property, which serves as protection of your equipment. However, it is not related to your projects, but rather for the protection of your office, commercial vehicles, and property.
Another form is the owner’s insurance, which is the most common among companies with fewer people working there. The main feature is that it is more affordable when compared to other models, which is the main reason why smaller companies are choosing it more often.
Moreover, you have to take care of the protection of your workers as well. Therefore, you should add the compensation for the workers in your policy if it is not already part of the program. Dealing with roofing construction can be quite dangerous depending on the project, and it is essential to combine various policies to protect your business from risks. Even a smaller mistake could lead to an injury of your workers or people around, and not being able to cover the expenses will lead to bankruptcy and potential legal issues.
Main Features of Worker Compensation
This is one of the crucial models when it comes to the protection of your business. As we already mentioned, the roofing business requires high-security measures, and you need to keep in mind that there is always room for mistakes that could lead to injuries.
With this model, any expenses related to the treatment of your injured workers will be covered, and they will get proper compensation from the insurance company as well, while you won’t be responsible at all. However, it is essential to provide the project with the proper security measures. Also, it will protect you from potential legal issues where some worker might decide to sue you for the injuries he got.
While it is essential to choose a model that will secure your workers and tools, securing you against the clients is also highly important. It will cover all expenses related to injuries, damage of the property, legal issues, and all other problems with your clients.
However, you have to know that it won’t cover your equipment and injuries of your workers, which is the main reason to combine it with the previous model. On the other side, you still have the responsibility to properly lead the whole project. This model won’t protect you if the client proves that damage and injuries were caused by your fault and incompetence.
There are two forms of this insurance, the occurrence, and claims. The occurrence will cover expenses for any issues and injuries. For example, if your client decides to sue you due to some injury or damage to his property, this will protect you from any responsibility.
Also, it can work retroactively, but only in case that you didn’t know about the problem before you applied for this model. When it comes to claim-based policy, it is active only during the determined period, and each problem will be covered during that time.
In that matter, buying a proper model is essential for your security. We already mentioned the legal issues and high expenses of medical treatments. Besides the financial issues, you might even end up in jail due to proven incompetence and inability to cover the expenses for injuries and damage to the property. There are different models available, and the best way to determine the amount of coverage is to buy one according to the project you are working on at the moment.
In most cases, the general liability will cover up to $5 million. However, if you are working on some bigger project, like the roofing of some commercial buildings where more people are included in the project, and where the risks are even higher, you can negotiate a higher coverage, but it will require a higher price as well.
The Bottom Line
Even if you have years of experience in this branch, and you are only hiring professionals, keep in mind that there is always a chance for incidents. Also, getting proper insurance will also secure your clients since they are looking at it as one of the factors when choosing the construction company.
Besides the most common models, you can also add coverages for the vehicles, tools, and special models that will cover your expenses in case of a mistake. When it comes to the price of the program, it depends on the size of your projects, the number of people working in your company, equipment, and more. Also, be sure to look for the right agency when you need a proper policy.