The US construction industry is one of the largest in the world. It has an estimated expenditure of $1,231 billion yearly. But even as it thrives, the expectation is loss of $1 billion every year to construction site theft.
Small construction companies face risks such as third-party injury, damage to third-party property, and advertising injury. Therefore, most contractors take up Contractor Business Insurance for their businesses, but is it enough?
In this article, we take a look at Contractors Liability, Builder’s Risk Insurance Protection, and the dangers of being underinsurance.
Contractors Liability is an essential risk management tool for your construction business. Most states disallow construction companies to work on a project without it. Here’s what it gives you:
This refers to physical injury caused to a third party as a result of your construction activities. Say a piece of timber falls off the roof and injures a passerby. However, your company will be held liable for their medical bills. They could also sue you for loss of income due to the injury. Thus, getting insurance shifts this responsibility from your pocket to your insurer.
There’s always a chance of accidental damage to a third party’s property during construction. Say an employee accidentally bumps a wall as they back up a truck. Moreover, your Contractors Liability can cover the cost of building a new fence.
It is possible to get sued for the wrongful use of copyright images or logos during your advertising campaigns. Indeed, legal fees can be expensive, especially if the court case drags on.
Getting Contractors Liability insurance seems like a smart move, but like most insurance policies, it has a limit. In fact, taking out a single insurance policy can leave you underinsured.
Contractors Liability leaves your building project vulnerable because it only covers third-party damages. Thus, to ensure that your business is sufficiently covered, you could take up Builder’s Risk. Builder’s Risk coverage protects buildings under construction from theft, vandalism, natural disasters, and fire.
When you are underinsured, your insurer only covers a portion of all your claims – or not at all! You will have to cover the rest of it out of pocket. In addition to this, clients may take legal action against you if you fail to honor your contract. This may harm your reputation and affect future business. Moreover, it is wise to supplement your cover by taking up Builder’s Risk insurance protection for your next building or renovation project.
Due to its risky nature, the construction industry remains heavily reliant on risk management. Without proper and adequate insurance coverage, your bottom line can be adversely affected. To get Builder’s Risk insurance protection, call us at 877 960 0221. Protect your business.