Contract construction work will require that a licensed contractor have adequate and proper construction insurance for contractors. Having the right policies will offer protection to the owner, the employee, and the project owner. By choosing the correct coverage, a construction owner can rest easier and the project owner will know the company he or she is working with is professional and well prepared.
The basic insurance that all contractors need is general liability to cover any claims that have to do with damage to property and bodily injury while on the job. This coverage does not cover damage to the owner's property or equipment. However, it can be made specific to cover issues like work done underground or for fire and explosions that could result from employee mistake.
When your company also provides engineering or design services, or any type of information that relies on your employee's calculations, you will want an Errors and Omissions policy. Making a mistake at the very beginning of a project that is not found could jeopardize the entire project.
Protecting company equipment while in transit and while on site will require risk insurance. This will also cover building materials while at the site. This coverage will protect from damage due to weather like tornadoes, hurricanes, and fire. It will also cover theft. Policy terms last from start to finish of each project.
Coverage for company vehicles can be added to the general liability policy. This will cover the owner, the person contracted to, and anyone directly affected by the work being done. It covers property damage done to others due to actions of you or an employee. Bodily injury will be covered for injury to another in the course of work.
Protection after a project is completed is simple called completed operations. This will insure completed work that was done incorrectly and caused damage. Water damage due to improperly fitted pipes or a fire due to a mistake in electrical wiring would be protected.
Employees are protected from lost wages and medical costs in the event of an on the job injury. The employee's family is due a death benefit if the situation is catastrophic. This and any disease contracted due to exposure on the job are all in Part A of Worker's compensation. Part B protects the owner when the employee waives the coverage in order to sue the employer if he or she sees fit.
The coding of work comp insurance is exacting and time consuming. Some companies track each partial hour of an employees work to assign the correct code. The code produces a cost per hour that an employer must pay. A secretary will have less exposure and less risk, therefore a much lower hourly code rate than a window washer for skyscrapers will. Having experienced and knowledgeable people tracking codes can be a great cost savings to the company.
The best place to start when looking for an agent is by personal reference and by searching the internet. By typing in construction insurance agency and your zip code, you will get local agency contact information. Call a few agencies and get quotes so you can compare. If pricing is fairly even across your choices, base the decision on your interaction with the agency and its employees. They will be your guide in helping you choose the right coverage for your business.
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