You may be one of many new start-ups in the construction industry. Many entrepreneurs, some former employees, are starting their own construction companies and will need to consider several types of insurance that all contractors require in order to protect their business. A Newton Construction Insurance Agency can assist with discussions on the various policies that fit the mold of this exciting industry.
The most common insurance requirements are general liability (also known as commercial general liability or CGL), workers compensation (WC) and business auto insurance (BA), which no contractor running this type of enterprise should be without. Before signing any contract, a contractor should purchase, at minimum, this required insurance in advance of taking the job.
What does CGL, WC, and BA cover?
General Liability insurance is designed to pay anytime that a contractor is deemed legally liable for bodily injury and/or property damage up to the limits in the policy arising out of premises, operations, products and completed operations. The policy also includes medical payments, advertising injury, and personal injury. The policy excludes injuries to employees, automobile liability, professional liability, and any damage to the work and equipment. Certain exclusions are generally contained in the policy since those issues are covered by other insurance.
WC insurance is designed to provide compensation to employees injured during work, including any medical bills, disability or death benefits as set by statute. By providing a WC policy the employer is immune from lawsuits from employees or heirs.
A BA policy includes bodily injury and property damage liability, uninsured and underinsured motorist liability, medical payments, personal injury protection and coverage for damage to any auto used for business, and includes collision, comprehensive, specified causes of loss, towing, rental reimbursement, hired and non-owned auto coverage.
But this is just for starters. In addition to these three policies, a contractor is going to need to purchase coverage for tools and other equipment, pollution issues arising from the type of work performed, and professional liability coverage. Surety Bonds are another topic for discussion that is equally important in order to run a successful construction company. A Newton Construction Insurance Agency professional will be happy to talk to you about the various risks and concerns that should be addressed.