Why is insurance needed in the construction sector?
Some of the most common risks in the construction sector and why it is essential to have this type of insurance are the following:
- Falls : These are the main cause of accidents in construction, since work is usually carried out at high heights. These can occur due to the collapse of a scaffold, lack of signage, absence of railings, slippery floors, absence of protective devices.
- Struck by objects: This is the second most common risk in construction companies, and usually occurs due to falling debris, flying swinging objects, or rolling objects.
- Electrocutions : At least 9% of construction accidents are related to electrocutions, the main causes being: exposed electrical cables, water in contact with electrical systems.
- Getting caught in objects : Due to landslides, these are the least common accidents, but they are still a possibility.
If any of the construction workers suffers an accident, the construction company will be responsible for covering all expenses, unless they have insurance for the construction business. Likewise, if the construction causes damage to third parties, a good insurance can offer support for different eventualities.
Classification of construction insurance
Liability insurance
It is aimed at protecting against damages caused to third parties as a result of activities carried out by the construction company.
Property Insurance
Fires, thefts, and vandalism can occur in a building. When this happens, it is important to have property insurance that covers the damages.
Company vehicle insurance
In every construction company there are various vehicles and machinery that are prone to damage and are essential for transporting goods and workers. With vehicle insurance, these are protected from any damage.
Specialized insurance
Other insurances that may be useful in construction are the following:
- Heavy equipment insurance: Covers the most expensive machinery.
- Environmental insurance: In case the construction generates any impact on the environment.
- Cargo transport insurance: Which protects the different goods used in construction.
Insurance for construction work
Among the insurance policies for construction companies that are designed to protect workers are:
Work accident insurance
As mentioned, the construction sector is full of risks, and many accidents can occur and compromise the safety of workers. This is what work accident insurance is responsible for, covering medical expenses and even the wages of workers who are injured at work.
Workers' Compensation Insurance
Workers who suffer an injury or illness as a result of their work in the construction sector can obtain compensation if they have this type of insurance.
Types of insurance for construction businesses
In addition to all the insurance mentioned above, it is also important to have the following types:
Business interruption insurance
In the event that the construction process is halted due to an accident, catastrophic situation or unforeseen event, the company will incur some losses. This insurance will compensate for the loss of income generated during the time of work interruption.
Errors and omissions insurance
Negligence is a latent problem. Errors and omissions insurance, also known as professional liability insurance, will support the company if claims for damages arise from the negligence of some of the workers or the company in general.
Best Construction Insurance Companies in the United States
Some of the best insurance companies for construction work , which offer excellent coverage are:
Erie Insurance
Among the variety of insurance offered by Erie Insurance is contractors insurance, which covers everything from property damage to contractors' liability.
Coverages:
- The contractor's responsibility.
- Of liability for pollution.
- Of errors and omissions.
Progressive Commercial
This insurance company has more than 50 years of experience and offers 30 different types of coverage, both for automobiles and commercial liability.
Coverages
- Overall responsibility.
- Professional responsibility.
- Workers' compensation.
Chubb
It is an insurance company specialized in offering personalized insurance aimed at providing support to the different construction companies in the country.
Coverages
- Primary construction accident insurance.
- General and excess liability insurance for the construction industry.
- Against builders' risk.
- Liability for pollution.
- Professional responsibility.
Importance of construction insurance
Beyond knowing what insurance a construction company should have, you must understand that these will determine whether workers carry out their work in a safe environment, protected against any eventuality, hence the importance of having the most comprehensive construction insurance coverage .
How much does contractor insurance cost?
The cost of an insurance policy will depend on many factors, but on average monthly rates are around $90, although some insurance companies can have prices of up to $35 per month.
What does comprehensive construction insurance cover?
This type of insurance provides coverage for damage to third parties, accidental damage, bodily injury and loss due to catastrophes such as fires.
What is a construction policy?
It is an insurance policy that offers coverage for damages of any kind that occur during a construction site.
Are construction insurance mandatory?
Construction insurance is not mandatory in all states, but some states will not allow you to operate without construction insurance or workers' compensation insurance, just to name a few examples.
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