What to Know About Insurance for Concrete Contractors
by Diana Williamson Insurance 07 January 2021
Concrete contractors are responsible for a lot of activities during a construction project. It is possible every building or major structure you’ve called home or have been in was once mere blueprints of a concrete engineer.
It is up to concrete contractors to set up the foundation of the establishment, lay the sidewalks, build curbs, and apply cement onto buildings. While these roles may differ depending on the nature of your business, there are plenty of risks for concrete contractors in their line of work. For this reason, proper insurance coverage is very important.
Importance of Insurance for Concrete Contractors
Whether you’re an independent concrete contractor or have recently launched your very own construction firm, you might be wondering why insurance is necessary for you.
For starters, the insurance coverage will protect you and your business from litigation. According to the law, contractors owe the same obligations to their clients just as much as big businesses. As such, contractors can be held liable for expenses that occur as a result of an injury or property damage.
It is no secret that the construction industry is booming. As per the United States Bureau of Labor Statistics, the industry has employed thousands of concrete workers, and jobs are expected to increase by nearly 30%. In an industry this big, there is bound to be a lot of competition.
For concrete contractors to get work, they need to find ways of getting an edge over their business rivals. One such way is to invest in insurance.
Clients prefer working with contractors who have concrete insurance and most do not allow uninsured contractors to work on their projects. An insured contractor will appear very professional in their work and their clients will relax knowing they will not be held financially liable for accidents that may happen during the project.
Types of Insurance for Concrete Contractors
The kind of concrete insurance you need depends on your business or given project and the property or persons to be covered. Here’s a list of different kinds of insurance coverage available for concrete contractors.
1. Contractor General Liability Insurance
This kind of insurance offers protection to a business from liability in the probable event of property damage or bodily harm. In some states, contractors are required by law to have some level of liability insurance and some clients may ask for proof before agreeing to a contract.
2. Builder’s Risk Insurance
Also known as a course of construction insurance, a builder’s risk insurance provides coverage for ongoing construction projects. The policyholder will have the option of covering building material, temporary structures, and several other outdoor fixtures.
3. Contractor License Bonds
Contractor license bonds are not really an insurance policy but they operate similarly and are both provided by insurance companies. They guarantee that a contractor will adhere to the regulations that apply to that particular contractor’s license.
Invest in the Best Insurance Policy for Your Business
Concrete contractors are usually required to buy insurance by both the law and their clients. However, they need to consider the expertise and experience an insurance company has in the construction industry before paying for insurance. The more associated the insurance provider is with the industry, the easier it is to file for claims.