Concrete Insurance for Contractors: The Coverage You Need
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According to the U.S. Bureau of Labor Statistics, the job outlook for concrete workers is projected to increase by 29% for the next few years until 2022. As a concrete contractor, you are an integral part of any construction project. You pour foundations, sidewalks, parking lots, curbs, and much more. You work with a variety of materials such as concrete grout, shotcrete, and precast concrete.
Your job can also be quite dangerous because of the services you provide. You have to secure your work area and keep your employees safe and secure. You have the responsibility to ensure that the materials you use will remain stable and attractive for years.
But no matter how careful you are, no matter how experienced you may be, accidents do happen. If someone files a lawsuit, it could be the end of your business. That's why concrete contractors need business insurance. But what insurance do you need? To learn more about concrete contractor insurance, read our handy guide.
Most—if not all—of your clients will require you to show proof of insurance (a certificate of insurance from your insurance provider) before they even consider your bid, so these coverages are all something you need to look into as part of your business insurance:
Unfortunately, life is full of unseen and unplanned events. General liability insurance will protect your business from claims that include third-party bodily injury and property damage that can occur while you are on a job site. It also includes products and completed operations, so if something happens down the line you aren't held responsible.
What if, for whatever reason, one year after you finish the job, the client contacts you to tell you that the concrete is crumbling and they need it fixed? What if a group of teenagers decides to "party" at your worksite and two of them get drunk and into a fistfight resulting in injuries that require hospitalization? What if children decide to write their names in your wet concrete and make a huge mess of your work? What if the weight of your cement mixer causes damage to newly-laid pipelines beneath the surface?
In each of these examples, your general liability insurance policy is going to protect you by paying defense costs, court costs, and awards or settlements for such suits.
Commercial property insurance covers the physical assets of your business. It can protect your concrete contracting business by covering the cost to replace or repair your building if property damage is incurred by a covered peril.
Commercial property insurance carriers typically pay for claims of financial losses from a covered event such as a fire, theft, wind damage, and other natural disasters that might damage your buildings or properties. Additionally, it can cover your construction equipment, inventory, furniture, and the personal property of your employees. Small business owners need this coverage.
A business owner's policy (BOP) is a type of specialized insurance that bundles general liability insurance, business property insurance, and business interruption coverage. It often includes equipment breakdown coverage and dishonest acts performed by your employees. A BOP is a great way to save money and still get the insurance coverage you need (versus buying each policy separately).
Business interruption insurance—also referred to as business income and extra expense—can help cover operating costs if your building or warehouse is damaged and needs repair. It can help cover your bills, payroll, taxes, and other operating expenses when necessary.
If you hire employees versus contractors, in most states you're required to get workers' compensation insurance. Workers' compensation coverage will cover medical expenses and a concrete contractor's lost wages if your employee is injured while working. Workers' compensation also offers protection to you against being sued for the employee injury.
Many concrete contractors question the need for coverage—but what happens if an employee slips and falls on a construction site? A concrete contractor also works with heavy equipment. What happens if they are injured operating machinery?
Example: One of your employees is pouring a new driveway for a customer. They are breaking up and removing the old concrete. Unfortunately, the jackhammer causes some loose concrete to fly up and hits your employee. You rush over to find your contractor has a broken nose. You rush him to the emergency room. Luckily, because you have workers' compensation coverage, the insurance company will pay your employees' medical expenses as well as pay for their lost wages while they're recuperating from their work-related injury.
Workers comp is often necessary to remain competitive in your industry. If an employee is offered benefits that will cover their medical bills if they're injured, they'll take that position over one that doesn't. The concrete industry isn't without significant risk. Provide your employees with peace of mind.
A concrete construction insurance package should also include some of the following insurance options when necessary.
Contractors' errors and omissions insurance—also referenced intermittently with professional liability insurance—isliability coverage that protects your business from allegations of negligence, undelivered services, missed deadlines, etc.
If a client sues you for any of these reasons, your insurance provider can provide you with legal representation as well as cover legal fees, court costs, and settlements.
If your concrete company owns a fleet of cement mixers, other trucks, or you drive a company vehicle, you need to obtain a commercial auto policy. If one of your employees is driving a truck that injures someone else or destroys their property, you're held liable. Make sure your auto insurance covers bodily injury and personal injury.
Also referred to as contractors' tool and equipment insurance, inland marine insurance covers any tools and equipment while in transit to job sites or stored at a job site. Why do you need this insurance? If it is not permanently attached to your vehicle, it is not covered by commercial auto insurance.
Builders Risk Insurance is common in the construction industry and is typically purchased by the project manager or head contractor as blanket coverage for a work site. If you haven't purchased this insurance plan, you'll want to make yourself and any contractors or subcontractors are also covered under the policy.
Employee dishonesty insurance protects your business from financial losses related to employee theft. It covers things like fraud, embezzlement, forgery, and theft of money or business property. While you may not consider it necessary, most business owners are trusting and unaware that they're being robbed.
A basic general liability policy can start as low as $29 a month, according to Next Insurance. As you customize your coverage and add more insurance options, the price will increase. For example, the higher your coverage limits, the more you'll pay for coverage. We always recommend speaking with an agent with experience in your industry. They can help you gather information and compare quotes from different insurance companies. They'll work to make sure your small business is properly insured.
Our goal at Tivly is to protect concrete businesses like yours as efficiently as possible. Whether you're in the gathering information phase or seeking to learn more, our agents will gladly help you get a concrete insurance quote. Complete the form at the top of the page or give us a call at 877-907-5267. We'll help you find the insurance coverage your concrete company needs.
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