As a construction company, you want to be sure that you have the right insurance to help cover any eventuality. Insurance helps protect you, your employees, and your customers, providing the necessary funds that will cover any problems outside your control on the job site. Accidents happen, both on the job site and off, and you want to make sure that they won’t pull your business under. Inadequate commercial insurance can bring your business crashing down around you–but the right types of insurance can transform your success and ensure that your goals aren’t derailed by an accident.
Step One: Checking Kinds of Insurance
As a construction company, there are several kinds of insurance that you’ll need to carry in order to protect your business and your employees. Commercial insurance often isn’t a one-size-fits-all policy, and one type of coverage won’t protect you from other types of accidents. For this reason, it’s important to make sure that you have all of your bases covered.
Workers’ compensation insurance: When you’re in charge of a construction company, you know how easy it is for accidents to occur on the job site, even with proper safety precautions in place. Unfortunately, some of those accidents can put your employees out of work for a while or result in significant medical charges. By procuring workers’ compensation insurance, you’ll ensure that you have the funds on hand to pay those costs.
General liability insurance: A member of the general public walks across a construction site and is injured by unsecured equipment. You accidentally drop something off of the roof, and someone is injured. Perhaps you make a mistake that results in a costly repair that’s needed for the building. General liability insurance helps ensure that your company is covered in these situations.
Auto insurance: Whether you’re in a company vehicle or you have employees who are heading out to purchase items for the job site–or even to pick up lunch for the crew–it’s important that you carry adequate auto insurance. In the event of an accident when they’re driving, the costs could come back on you–or someone who has been hurt could sue your company. Auto insurance helps bear that weight and protects both you and your employees.
Insuring your equipment: When you have expensive equipment sitting out at the job site, you want to be sure that it’s protected. Insurance helps protect against vandalism, natural disasters, and other potential problems that could destroy your important equipment.
Cyber insurance: Today’s world is highly digital, and there’s a lot of information in your systems. What will your business do in the event of a cyber attack? How will you handle it if your data is compromised? Cyber insurance helps provide protection in the event of those disasters.
Umbrella/excess insurance: Sometimes, the cost of an accident, injury, or other problem will exceed the payment offered by your existing policies. Umbrella or excess insurance helps pick up those costs, ensuring that you won’t be hit hard by the disaster.
Step Two: Ensuring Adequate Insurance
It’s always better to be over-insured than under-insured. In order to determine whether or not you’re able to protect your business adequately with your current insurance, take a look at these factors.
- What’s the highest level of damage your company is likely to cause? Is your insurance adequate to covering that eventuality?
- Does your policy cover the details of the construction business? Working with a company that is familiar with construction companies will help provide you with better protection than picking up general liability plans from companies that offer a wider range of services.
- What’s your deductible? If it’s higher than the ready cash you can put into a problem, you’ll need to increase your coverage.
- What does a disaster have the potential to do to your company? Are you adequately protected against it?
- Do you have all the types of coverage necessary for a construction company, or are you missing insurance that could lead to a disaster?
Having adequate insurance coverage is critical for your construction business. While it’s a considerable weight on your budget, it’s also the best way to protect your finances in the event of a disaster. If you’d like some guidance with choosing commercial insurance coverage, managing payroll, or a wide variety of other HR-related services, give Harbor America a call today.