Concrete contractors play an integral role in construction projects. They create parking lots, sidewalks and foundations. But like any other job in construction, their jobs are risky and dangerous. It is crucial to have adequate insurance for concrete contractors. But what type of coverage do you need? And why exactly do you need insurance?
Do Concrete Contractors Really Need Insurance?
Just like any other business owner, concrete professionals have budgets. Any additional expense must be considered carefully. Is insurance really a necessity? Yes.
- There are many risks associated with the job.
- Insurance is almost always required.
To win a bid or start a project, you will likely need adequate insurance. In addition, if you want to hire employees, drive to work or protect your property, you will need insurance coverage.
The job itself also comes with its own risks. Job sites need to be secured and employees kept safe during work. Accidents can and do happen in this business. With the right insurance coverage, all parties can be made whole without bankrupting your company.
Long story short – insurance is essential as a concrete contractor. But what type of coverage do you need?
Concrete Businesses Insurance Requirements
Each state has its own laws for business insurance requirements. It’s important to research and understand these requirements before you start operating your business. That being said, there are some coverages that every concrete business should have.
Every concrete business is unique and will have its own risks, but generally, your insurance should include:
General Liability Coverage
Most businesses should have general liability insurance. This vital insurance provides coverage for third-party injuries and property damage. For example, if you’re on a job site and there’s an accident that damages the client’s property, general liability would likely cover the cost of repair and injuries.
The average customer damage or injury claim is about $30,000, so having this insurance is critical to the financial health of your business.
General liability insurance will cover court costs, legal fees and settlements if a liability claim is brought against your business. This policy will not cover:
- Damage to your work
- Damage to your property
- Intentional damage or injury
- Professional services
- Employee injuries on the job
- Motor vehicles used for commercial purposes
Business Owner’s Policy
Many concrete business owners find that it’s easier to purchase a business owner’s policy, or BOP. A BOP is a bundled policy that includes:
- General liability
- Business interruption insurance (helps your business cover costs if you’re unable to operate due to a covered incident)
- Business property insurance
Because a BOP is a bundled policy, it’s often less expensive than purchasing each coverage separately.
Property Insurance Coverage
If your business has a physical location, it’s important to have property insurance. Commercial property insurance can protect your business by covering the cost of repairing or replacing your building if a covered peril occurs, such as:
- Natural disasters
A property insurance policy may also cover your inventory, equipment, furniture and other items.
If you have employees or plan to hire employees, you will need workers’ compensation insurance. Workers’ comp covers medical expenses and lost wages if an employee is hurt on the job. Additionally, this coverage protects your business against lawsuits related to employee injury.
Specifically, workers’ comp covers:
- Medical bills
- Rehabilitation costs
- Death benefits
- Lost income
Texas is the only state that doesn’t require workers’ compensation insurance. Even so, it’s still in your best interest to have this coverage. Without it, an employee can sue you for job-related injuries or illnesses.
The concrete business can be dangerous. If an employee is hurt while pouring a concrete driveway, for example, you’ll leave yourself vulnerable to a lawsuit that could bankrupt your business if you don’t have this coverage.
If you have a company vehicle or a fleet of trucks, you’ll need commercial auto coverage. Vehicles that employees operate must also have insurance.
Much like your personal auto insurance, commercial auto will provide coverage for company vehicles if they’re in an accident. Make sure that your policy has adequate coverage for bodily injury and property damage.
Additional Insurance Coverage Options for Concrete Contractors
The policies listed above are essential for concrete contractors, but there are additional policies that you may want to consider for added protection.
Contractor’s Tool and Equipment
Contractor’s tool and equipment insurance is also known as inland marine insurance. Just as its name suggests, this insurance covers equipment and tools that are either in transit to a job site or stored at a job site.
Unless your tools and equipment are permanently attached to your vehicle, they won’t be covered by your auto insurance policy. Inland marine coverage will ensure that these valuable assets are protected if they’re damaged or stolen.
Errors and Omissions
Errors and omissions insurance is also known as professional liability. Having errors and omissions insurance can help protect your business against claims of:
- Missed deadlines
- Work that wasn’t completed
Errors and omissions insurance will cover legal representation, settlements, legal fees and court costs if your business is sued for any of the reasons above (or other reasons covered by this type of policy).
How Much Coverage Do You Need?
The amount of coverage you purchase will depend on several factors, including your business’s:
- Revenue and payroll
Generally, the larger your business, the more coverage you will need. However, some locations will also warrant having more coverage because the cost of damages or other liabilities may be higher than in other areas. Your state may also have specific insurance requirements that you will need to meet.
If you’re unsure of how much coverage you should purchase, consider working with an agent who specializes in insurance for concrete contractors. The right agent will understand your risks and help you find the right coverage.
How to Shop for Concrete Contractor Insurance
When shopping for insurance and comparing quotes, make sure that you have the following information on hand:
- Payroll estimates
- Annual revenue estimates
- Information about previous claims
You may need to provide this information when getting quotes, and it will likely affect the cost of your premiums.
When looking at policy options, make sure that you understand what’s covered and what’s not covered. If you have questions, write them down and reach out to customer support. Asking questions before you buy a policy is a great way to see whether they have great customer service. Excellent customer support, after all, is important when it comes to insurance.
If you run a concrete business, having the right insurance coverage is crucial. Consider the policies above and any additional coverage you may need to protect you from risk. Compare your options and quotes carefully to find a policy that offers the best value for the money.