Contracting companies face unique challenges when purchasing insurance coverage. Like many businesses, general liability always makes up a part of any comprehensive policy, but it does not stop there. Few industries have the capital expense that goes along with industrial machinery or exotic building materials. Even regular supplies like copper piping come with increasingly high price tags.
Theft at construction sites can set projects back by weeks or even months if the items taken require customized replacement. Of course, one of the most costly issues to face any construction company is the possibility of an injury or accident. Insurance allows businesses to mitigate that risk by providing financial protection against these problems. Before choosing an insurance product make sure it offers coverage in every area and meets state guidelines.
These 5 tips help businesses separate quality packages from minimum protections.
- Be realistic about General Liability limits. Different companies have different needs for general liability coverage, but this is one area not to skimp. This broad category protects against many threats to a company. If a visitor to the site sustains and injury or if a customer is not satisfied and pursues legal action, general liability coverage takes on the financial risk. Many states mandate a minimum amount of coverage, so it is important for companies to consider whether or not the minimum really is enough.
- Find out how your state handles workers compensation. Some states require contractors to obtain private insurance to cover this category while other have a state-wide policy that all businesses contribute to. Each contractor must be aware of regulations and maintain compliance.
- Add a surety bond to your total insurance. Surety bonds protect construction companies from issues like strikes, subcontractor issues and more. Essentially, the surety bond pays out to clients if a contractor cannot finish a job to industry standard. This business exposure to suits based on customer satisfaction. Also, this protection ensures that the contractor is not liable for problems at the job site.
- Make sure materials are covered in case of accidents or manufacturer's defects. Contractors face substandard supplies on a regular basis. Even when ordering from the best suppliers, a certain amount of defect happens. A set of pipes might have a curve, or cement might have too much moisture, or any number of material issues crop up on sites. Materials insurance helps contractors avoid the financial liability when a supplier makes an error.
- Protect against theft. The equipment on a construction site has great resale value, which thieves know well. From large machines, like cement mixers, to high quality handheld tools, losing all of the equipment at a site could leave a company in a real bind. After all, no work happens when there are no tools available. The replacement cost alone could beggar some smaller companies. Protection against equipment and materials theft ensures a business can meet its obligations, even when things go missing.
An Indianapolis Contractors Insurance package must protect contractors from all avenues, and it must be affordable. Many businesses face the difficulty of juggling how much coverage they need with how much they can afford. Call one of the agents at Bolander Ianni Insurance today at 888-360-9150 and find out how to get total coverage at a reasonable price.