Construction workers have a higher risk of job-related illness and injury than workers in any other occupation, according to the U.S. Bureau of Labor Statistics. Workers in the construction industry can fall from scaffolding, ladders, and roofs. They can become injured by equipment and tools, be exposed to chemicals or fumes, or develop fatigue or repetitive stress injuries.
Whether your employees are carpenters, roofers, drywall installers, electricians, excavators, deck builders, siding installers, or pavers, construction insurance helps protect employees in the case of a workplace illness or injury and helps cover the small business from further liability and financial loss.
What are the common types of construction insurance?
Workers’ comp helps protects your construction business and covers your employees if they become ill or injured on the job. Check your current workers’ comp rate.
General Liability
General liability insurance helps protect you and your construction company against third-party claims that involve property damage, bodily injury, or advertising injury.
Business Owner’s Policy
BOP offers bundled insurance that may include business interruption insurance, property insurance, and liability coverage for your construction business.
Cyber Insurance
Cyber liability insurance helps cover your company for events such as a data breach in which your customers’ or employees’ personal information or your company data is stolen or held hostage.
Additional Construction Insurance Options
Additional coverage options such as flood insurance may be built into your business owner’s policy or purchased separately to customize your construction insurance package.
What are some construction risks, and which type of insurance may cover them?
Selecting small business insurance can be confusing. Here are some sample scenarios to point you in the right direction. We recommend consulting with a trusted advisor to make sure you get the right types of coverage for your business.
A carpenter trips over a ladder and breaks an arm
Workers’ compensation insurance may cover the carpenter’s medical bills and lost wages.
A customer trips over an extension cord and sprains an ankle while on site
General liability insurance may cover the customer’s medical bills and lost wages due to bodily injury and helps protect your company from further liability.
The warehouse and equipment are damaged by fire
Property insurance (often through a bundled business owner’s policy) may cover the costs to rebuild, repair, and replace the warehouse and equipment.
In addition to the damage, the business is interrupted due to the fire
Business interruption insurance (often through a business owner’s policy) may cover lost profits, temporary location moving costs, and certain operating expenses related to business loss from the fire.
An employee runs the box truck into a parked car
Commercial auto insurance may cover the box truck repair costs and the third party’s car repair bills.
Who needs construction insurance?
Businesses that perform electrical, roofing, carpentry, paving, decks, siding, or other construction-related activities should have adequate construction insurance. Employees involved in the construction industry may include:
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Contractors
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Electricians
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Carpenters
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Roofers
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Painters
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Flooring installers
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Deck builders
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Siding installers
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Sheetrock and drywall installers
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Plumbers