When it comes to owning a construction business, you are investing your time, energy, and capital into making your business a success. Still, there are a variety of circumstances or events that can impact your business. Insurance is meant to provide protection against those circumstances and events. However, it can be challenging to determine how much insurance you need and what should be covered. Here are a few key areas to consider as you make your insurance determinations.
What is Required by the State?
Depending on your area of expertise within the construction industry, you may be required to carry specific insurance in order to keep your licensing or to run your business. These requirements can include workers’ compensation and liability insurance. In the construction trade, you may also need to carry general liability or construction bonds for your various projects. Know your regulations and then determine if the minimum thresholds are enough for your business working with your insurance agent.
Do You Have Enough Insurance?
You might meet all the requirements of your state or industry, but depending on the size and scope of your construction business, those minimums may not be enough to help you rebuild your business or cover your losses. Plus, with the increasing amount of litigation throughout the United States, builders and contractors need to make sure they have enough coverage. Review your policies on a yearly basis, to see if an increase might be necessary.
Coverage and Exclusions Under Builder’s Risk Insurance
Another point where you might not have enough coverage is in your builder’s risk insurance. It will cover various items, but you need to review how much you have, what it will cover and what it won’t, as well as how much you will have to pay out of pocket. Extensions of coverage may also be available. Make sure that you understand what you are paying for and then determine if the policy is right for you and that project.
These are just a few of the areas where you need to consider your insurance needs. You may also have other policies covering aspects of your business. By scheduling a regular review with your insurance agent on an annual basis, you can adjust your insurance policies to fit the needs of your growing business. Contact us today to schedule an appointment to review your insurance needs.
Top Contractors Insurance Services is a full-service contractor insurance agency handling workers compensation, general liability, construction bonds, and auto quotes.