The Right Construction Insurance Can Help Keep You in Business

It takes a huge financial investment to keep your construction company up and running. You need a business office and expensive equipment to get the job done. You must transport your crew and equipment to whatever city or state your customer chooses to build. Your operations may be inherently dangerous for your employees or any stranger who wanders through your jobsite. A problem with any of these things could lead to a financial catastrophe.

Getting the construction insurance you need might seem like you're adding one more expense to a long list. But when the unexpected occurs, the right insurance can be the deciding factor when you must choose to keep your business running or close your doors forever. For a construction company, the right insurance is most likely a combination of policies specifically suited to your construction business. 

Business Owner Policy

What would happen to your business if your office were damaged and you didn't have the money to repair or rebuild? As a construction company, you might be able to perform the labor, but you'd still have to pay the cost of materials. You'd also have to replace phones, copiers, fax machines, computers, stationery and other items necessary to maintain contact with customers and general contractors.

You have liability exposures as well. If a visitor were injured due to your premises or construction operations, you'd need a professional to investigate and pay a claim on your behalf or defend you against a lawsuit. 

A business owner policy (BOP) includes coverage for your premises, business personal property, business income and liability exposures. You may also include optional coverages, such as employee dishonesty, outdoor signs and money and securities.

Inland Marine Policy

Inland marine policies are often called "floaters," as they cover scheduled items that may be on the business premises, in transit or located at a job site.

• A contractor's policy can include coverage for a schedule of bulldozers, loaders, cranes, backhoes and other heavy equipment wherever they are located.


• A builder's risk policy covers construction materials and structures in progress at a jobsite. 

Business Auto Policy

If you own vans, trucks or other construction vehicles that transport materials and workers, you have additional exposures. Auto liability coverage protects you if your driver has an accident that damages another vehicle or injures the driver. Collision and other first party coverages can pay to repair your vehicles. 

Surety Bonds

Bonds are not actually insurance, but they are just as important when it comes to staying in business. They provide a guarantee that your company has the means and the ability to perform.

• Government or other major projects may require a bid bond in place before they accept your construction bid.


• A performance bond guarantees that you will complete a job according to specifications and an agreed-upon schedule. 

Worker's Compensation

Employers are responsible for paying medical bills and lost wages when their employees are injured on the job. Your independent insurance agent knows about your state’s laws and requirements.

Getting the right insurance for your construction business doesn't have to be a complicated process. The same agent who writes insurance for your home and auto can review your needs and arrange the package of polices that's right for your company.