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Demolition Insurance [The Coverage Your Small Business Needs]

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Demolition contractors are usually hired to tear down buildings and structures through the use of heavy equipment. Anyone in this field knows that it’s a dangerous job. If you’re the owner of a demolition company, you want to protect your business and your employees—which is why you need demolition contractors' insurance. 

Why Do Demolition Contractors Need Insurance?

Here are a few examples of why demolition companies need demolition insurance coverage:

  • A passerby is hit by flying debris and requires immediate medical attention.
  • You miscalculate the explosives used in a demolition project and the explosion destroys the windows of a nearby business. 
  • One of your contractors loses his balance and falls while walking the construction site and breaks their arm.

These are just a few examples demonstrating the need for insurance coverage. 

Who needs demolition insurance?

  • Demolition contractors
  • General contractors
  • Piling contractors
  • Blasting contractors
  • Welding contractors

If your business uses wrecking balls, cranes, elevated work platforms, excavators, bulldozers, or other heavy equipment to dismantle structures—you need this specialized coverage. 

The Business Insurance Demolition Contractors Need

What insurance does a demolition business need? Here are our thoughts. 

Commercial General Liability Insurance

Any comprehensive demolition insurance package needs to include general liability insurance. General liability coverage protects your business from:

  • Claims of third-party bodily injury
  • Claims of third-party property damage
  • Claims of advertising injury, libel, or slander
  • Problems with completed operations

If your business is sued for any of these reasons, the insurance company you hold the policy with will provide legal counsel and the money to cover any legal expenses or settlements. 

Learn More About General Liability Insurance >

Errors and Omissions Insurance

Mistakes happen in any profession, and a demolition contractor isn't immune. You can give improper advice that leads to damage to other buildings. One of your contractors may accidentally demolish the wrong structure. If you’re sued for negligence, a professional liability insurance policy can protect your company.

Learn More About Errors and Omissions Insurance >

Workers’ Compensation Insurance

If you hire a demolition contractor or a crew for your demolition jobs, you’ll need workers’ compensation coverage. It is required in most states and protects both you and your employees. If an employee is injured at work, workers’ comp will pay for their medical expenses and lost wages. If employees agree to this coverage they usually waive the right to sue your and/or the business.

Learn More About Workers’ Compensation Insurance >

Inland Marine Insurance

Inland Marine Insurance—also referred to as Contractor’s Tool and Equipment Insurance—protects your tools and equipment while in transit or stored on a job site. It’s necessary because commercial auto insurance doesn’t cover tools and equipment that aren’t permanently attached to your vehicle. 

Learn More About Inland Marine Insurance >

How Much Does Insurance Cost Demolition Contractors?

Insurance companies are no longer running away from the wrecking ball. Because more mainstream competitors are entering the market, rates are decreasing and competition is increasing. 

Companies have become aware this has been a long under-served market and have developed specialty products and rates placing them under their “program markets” allowing agents to address the industry’s special needs and access a company’s expertise. That being said, the cost of a basic general liability policy can cost as low as $65 a month.

What factors influence the overall cost of demolition insurance?

  • Location of your business
  • The size of your business
  • How many employees you have
  • Annual sales/profit of your business
  • The years you’ve been in business
  • The insurance company and policies you choose
  • Deductibles and policy limits that you choose

The bottom line is that you want to get the right insurance for your business. Let us help!

Get a Free Demolition Insurance Quote

Keep your business protected with the proper business insurance package—we can help. Our goal at Tivly is to help small businesses get affordable insurance coverage. To get a quick and free quote, complete the form at the top of the page or call us at 877-907-5267.


Related Articles: Commercial Property Insurance, Debris Removal Insurance

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