Having insurance helps you secure your business while protecting everyone on your job site. Choosing the right policy for your construction business can be difficult if you are doing it for the first time. However, selecting the right coverage from the right insurance company is a crucial task and must not be taken lightly.
It is important to understand the frequency and magnitude of potential damages that can occur on your job site. Make sure you address all your business needs before making the final decision.
Here are the types of insurance you can buy to protect your construction business.
1. Workers’ Compensation Insurance
Any worker can get injured on a job site because of electric tools and other equipment. It is your responsibility to provide workers’ compensation coverage for them. This insurance policy will cover expenses, including medical bills and lost wages resulting from work-related injuries.
2. Commercial Auto Insurance
You may need to hire employees to drive large trucks and use heavy equipment. A commercial auto insurance policy covers the potential damage to your vehicles if they cause or involve in accidents.
3. Asset Protection
You own a fair amount of company assets, including heavy machinery, expensive tools, and other construction equipment. This type of insurance policy covers the damages to these assets.
4. General Liability Coverage
Sometimes, accidents on job sites can happen because of a worker’s mistake. If you have general liability insurance, your insurance company will pay for the damage. You will need to buy the insurance before accepting the contractor’s job. You can also buy this policy as a part of a business owner’s policy.
5. Surety Bonds
A surety bond would protect your clients if you failed to complete the construction job. It is usually used to protect subcontractors, vendors, suppliers, partners, and other businesses. These bonds can also make up for the difference if you are unable to pay for materials.
These are the five most common insurance policies you can purchase to protect your construction business. Contact the experts at Pittman Insurance Group for all your coverage needs. Our dedicated team is eager to assist with all your insurance questions and needs.