Construction-related deaths account for 21% of all deaths among US workers. Working in the contracting industry is full of risks. Nail guns, ladders, and potential electrocutions only scratch the surface of common risks that contractors face. Every project is different, but there’s one that should remain top of mind no matter what project you’re focusing on next: insurance coverage.
For contractors, having the right insurance coverage is about more than protecting property and equipment. It’s about protecting the people who put their blood, sweat, and tears into every undertaking. You’ll need inland marine coverage for your tools and equipment, commercial auto coverage for machinery operations, and much more.
Because securing insurance is notorious for being confusing and costly, our team at Nesbit Agencies wants to break it down for contractors around the nation. We’ll make sure you have the right coverage at the right price. Keep reading to find out more.
Types Of Insurance Contractors Need
Contractors won’t be able to find a one-size-fits-all insurance policy. Instead, they’ll need to secure coverage for a number of different possibilities. With general liability, inland marine, commercial auto, workers’ compensation, and umbrella coverage, contractors can rest easy knowing they’re covered in every situation.
General Liability
For coverage from lawsuits to bodily injury, general liability helps act as a first line of defense when needed. Do you have buildings or shops that need coverage in case of a fire or weather event? General liability is the answer. Most business owners will have general liability insurance to provide protection for things that can happen while running a business, and contractors are no different.
Inland Marine
Tools and equipment in the construction industry are expensive. Bulldozers, tractors, skid loaders, and other tools are used often and are meant to have a very long life cycle. Since buying a new bulldozer every year isn’t feasible, be sure to have an inland marine policy to cover equipment failures, machinery replacements, and more.
Commercial Auto
We know how busy the construction season can get. New hires are constantly being put on jobs and asked to drive heavy machinery early on. Vehicle-related accidents happen, and that’s why it’s important to have commercial auto coverage. This type of coverage will absorb business costs related to motor vehicle accidents, theft, and vandalism. Every state requires companies that have vehicles for employee use to have commercial auto coverage.
Workers’ Compensation
In 2021, there were 169,200 recorded injuries in the industry. Construction-related injuries are no joke, and often, they’re very costly. In fact, the annual cost associated with just the top five injury causes in construction—falls to lower levels, struck-by incidents, overexertion, same-level falls, and pedestrian vehicular incidents—sits right around $7.87 billion.
Workers’ compensation insurance helps insulate contractors against the costs associated with work-related accidents or illnesses. It also provides key benefits to employees if they are injured on the job. Most states also require contracting businesses to have workers’ compensation coverage prior to opening their doors.
Umbrella Coverage
Finally, umbrella liability insurance supplements general liability insurance and other policies. This type of coverage can help boost the level of protection you are able to enjoy as a business owner and offers your employees more support, too.
A Small Price To Pay
In the insurance world, we see a lot of contractors who are hesitant to pay for insurance coverage. We know that premiums can be costly, but the cost paid to have proper insurance coverage is nothing compared to what your business will have to take on if you don’t have the right insurance policies. Not only will you lack coverage in certain situations but you can even lose your license or face other regulatory fines for failing to secure necessary coverage. The cost of insurance is a small price to pay for the peace of mind it brings.
For Best Results, Partner With The Best Provider
At Nesbit Agencies, our days are filled with helping our clients find the right coverage for their needs. Working with a qualified insurance agent and agency can make a world of difference when it comes to locking in top-notch coverage for accessible prices. Once the coverage is secured, the job isn’t done.
Each year, we review our clients’ policies, update them as needed, and suggest new policies if the scope of work has changed in the last year. The last thing a business owner wants is to leave their business open to unnecessary risks, and with a provider like Nesbit, business leaders can feel secure in their coverage year after year.
If you’re still not sure where to start to get the policies you need to serve your own clients, reach out to our team today. We’ve been in the insurance space for decades, so while it might be new to you, it’s certainly familiar to us. We can’t wait to work with you!
Background Refs:
- https://www.procore.com/library/construction-safety-statistics
- https://www.osha.gov/sites/default/files/falls_ig.pdf
- https://business.libertymutual.com/wp-content/uploads/2021/04/WSI_1002.pdf
- https://www.bls.gov/iif/fatal-injuries-tables/fatal-occupational-injuries-table-a-1-2020.htm
- https://www.procore.com/library/contractor-insurance-types#5-commercial-auto-insurance
- https://www.sadlerco.com/industries/builders-contractor-insurance/umbrella-liability-insurance-for-contractors/#:~:text=An%20Umbrella%20Liability%20Insurance%20policy,your%20Workers’%20Compensation%20policy).
