Concrete contractors are responsible for building the foundation of our society. Every building and major structure you have ever inhabited or been inside of was once little more than the plans of a concrete engineer. Their work is truly some of the most important.
However, this line of work is not without its risks. The liability that is inherent to this industry makes getting proper insurance coverage critically important. However, not every contractor knows the best type of insurance coverage for their needs.
Here’s what you need to know about insurance for concrete contractors, paving business owners, and more:
The Importance of Insurance for Concrete Contractors
As an independent contractor, you may be wondering why you need insurance coverage. Likewise, a consumer may also wonder why their providers carry insurance coverage – and feel more comfortable knowing that they do.
Contractors have the same legal obligations to their consumers as larger businesses. You can be sued for damages and held liable for the expenses that this incurs. For that reason alone, most contractors make getting properly insured their first priority.
Insurance coverage safeguards your business. When you own your own business, you likely prioritize protecting it. Hefty legal costs could potentially put you out of work or significantly damage your business. That’s why insurance for concrete contractors is so important. It provides coverage for the costs associated with legal action that could potentially be taken against your business in the event of damages or other accidents.
Your clients probably prefer working with contractors who are properly insured. While you could be held liable for potential wrongdoings or damages without it – and that is decidedly your problem – your clients are not likely to be comfortable allowing you to work on their projects without proper insurance coverage. Many may refuse to sign a contract or even negotiate terms without proof of insurance coverage.
Lastly, insurance for concrete contractors may be required by law in your area. There are specific industries that are legally obligated to hold at least a minimal amount of liability insurance in many states. In many of these, both the client and the contractor are best served by having their own general liability policies.
While clients may be able to add you to their general liability policy as an additional insured entity, it is generally advisable for you and your client to have separate policies. This increased the amount of protection that you have – and keeps problems to a minimum should mistakes or accidents occur.
What Type of Insurance Does a Concrete Contractor Need?
There are several types of insurance for concrete contractors and other independent providers. However, the type that meets the needs of most of these professionals – and is both within budget and provides the coverage most likely to be required – is general liability.
Why is general liability insurance coverage so perfect for most businesses? It offers the most commonly-required types of coverage, including:
- Monetary judgments that any judge mandates against you.
- Court-ordered bond fees.
- Any reasonable costs incurred during an examination of claims against you or your business. (This may include lawyer’s fees and any fees that are assessed by the court.)
- Reimbursement if you must participate in activities related to your legal defense.
In some cases, you may need more coverage than general liability provides. In those instances, it is best to invest in specific liability policies for the coverage of foreseeable costs. Some of the costs covered by specific liability include:
- Property damage – Damage to your client’s property – and the resulting inability of the client to properly use that property – can be a serious issue. Luckily, if you have the right type of insurance coverage, the costs associated with this type of damage are covered.
- Bodily injury – What happens if a person is injured on your business property – whether your equipment or personnel are at fault, or not? If you have this type of coverage, their medical expenses and other associated costs will be covered and you won’t have to pay them out of your pocket.
- Personal injuries – If a person incurs an injury on your business property, you will be glad that you have this coverage in your corner. Medical expenses are costly, after all!
- Advertising injuries – Advertising claims are a tricky thing. If your claims fail to live up to consumer expectations – and injury or other losses occur as a result – the costs associated with potential lawsuits that result are covered with this type of insurance.
- Medical expenses – The medical expenses of any person injured on your property or as a result of your actions are covered by this subsection of your liability insurance.
- Completed product operations – Should your completed concrete products fail and cause injury – such as a crumbling building structure or walkway – the costs associated with their injuries and the replacement of the failed product are covered.
- Damages to spaces that you rent – As a small business owner, you may have to rent property to run your business. If so, any potential damages to that property are covered by this section of your liability insurance.
It is important to note that neither general liability nor specific liability policies offer coverage for worker’s compensation or commercial automotive coverage. Neither do these policy types cover the replacement of your trade-specific tools, and they may not be sufficient in their coverage of your business property. These are all additional types of insurance coverage which concrete and other contractors should investigate independently.
For more information regarding insurance for concrete contractors, contact the local industry experts at E & L Insurance Services, Inc. We have everything your business needs to ensure safe operation and protection against the everyday risks of this critically important line of work. You build the foundations of the buildings that contain our every experience; let us help you make your experience as a business owner better! Give us a calltoday to learn more and request a quote!