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The Basics of Builders Risk Insurance

By August 1, 2019April 19th, 2024No Comments

Construction workers face a large number of unique risks on the job on a regular basis. When your employees are operating heavy machinery as a part of their daily routine, you absolutely need insurance policies in place to protect their safety and your business. Below are just a few examples of insurance policies that construction workers can benefit from.

General Liability Insurance

General liability insurance is the most basic type of insurance that any business should have regardless of its industry or size. This policy will provide you with top-notch legal representation and pay for covered damages caused by you or an employee up to the maximum limit provided on the policy. General liability insurance will typically be required when entering into a contract with a third party or pulling permits in a city like Philadelphia.

General liability insurance, however, does not cover the costs of an employee’s medical bills if they get injured on the job. This type of coverage would require workers compensation insurance.

Commercial Umbrella Insurance

Commercial umbrella insurance provides an additional layer of liability protection for your business in the event of a loss that exceeds the limits of policies you have in place. For example, if you have a $2 million limit on your general liability policy and the costs of a claim end up adding up to $2.7 million, your commercial umbrella policy will step in to make up the $700k difference.

With construction being a high-risk industry, employee injuries and property damages can be costly without sufficient coverage in place. Commercial umbrella insurance will help protect your construction company from major losses and even closing its doors for good.

Workers’ Compensation

Workers compensation insurance is necessary for all business owners who have at least one full-time or part-time employee. If you have “sub-contractors” or 1099 employees, you may still need coverage. These sub-contractors can be considered employees, making you responsible for injuries occurring on the job.

Workers’ Compensation insurance will provide wage replacement and medical benefits to an employee who is injured on the job. In return for these benefits, the employee waives the right to sue you, the employer, for negligence.

Construction workers are on the move for hours at a time using power tools, lifting heavy objects, and working at height; almost 40% all construction worker deaths in 2017 were due to falling. If one of your employees falls off a roof and breaks their arm, you could be expected to pay for their medical bills. A trip to the hospital can be very costly depending on the nature and severity of their injury, so a workers compensation policy will help cover these costs. Furthermore, if your employee decides to sue you after an accident, a workers compensation policy would also help cover the cost of any legal fees.

Call Risk Averse Insurancein Media, PA to discuss workers’ compensation coverage for your business.

Risk Averse Insurance is an independent insurance agency in Delaware County that specializes in providing high-quality insurance products at an affordable price.