Is your small construction business finding it difficult to grab projects?
Subsequently, one of the reasons could be that you don’t have contractor business insurance. As a result, general contractors and other clients take on the financial risk.
Just less than 50% of small businesses don’t have insurance protection and do not plan to buy insurance soon. Moreover, the US is the home of 30 million small businesses. According to the Small Business Administration reports, small businesses account for 99.7% of the USA’s total companies. These figures also include sole proprietors and self-employed businesses. However, the same report also shows that every year 1 in every 25 firms closes due to low sales.
Why are so many construction companies uninsured?
Huge construction businesses never compromise on insurance protection. Insurance is a part of their risk response. However, small construction businesses struggle with cash flow management. Cash flow is the circulating funds of a company. Moreover, in the case of weak cash flow, inexperienced contractors compromise on the safety of their company. They choose to skip Contractor Business Insurance cover to ease up the cash flow’s pressure. However, this is the worst thing you choose for your business. Insurance cover is mandatory in most US states. Therefore, skipping it makes your business questionable and open to penalties.
Consequences of Uninsured Business
Insurance protection is a necessity for construction contractors if they want to stay in the market. Consider going on a hiking trip, and wearing the wrong type of shoes. Your trip will be an unsuccessful adventure, no matter how hard you make efforts to reach the hill’s top. Similarly, Contractors Business Insurance is a tool that helps your business to navigate through the tough challenges of the construction industry. However, the selection of right insurance covers is also crucial for the successful response to uncertain scenarios.
- Contractor General Liability Insurance
This insurance cover protects a business from a wide variety of damages. It assists contractors in the time of adversity by providing financial compensation. This is the case of physical injury, property damage, personal injury. On the other hand, it includes other losses during your business operations.
- Bodily injury and property damage liability
- Personal injury
- Medical payments
- Products completed operations
- Damage to rented premises for your business
- Builders Risk (Course of Construction) Insurance
Builders Risk is an insurance cover acquired to protect the constructed structures and labor charges of a specific project. Contractors must buy builders’ risk insurance at the start of every new project. To be precise builders’ risk insurance include:
- Construction materials
- Foundation of a constructed structure
- Temporary structures such as
- Paving, fencing, outdoor fixtures at the construction site
- Supporting structures installed by the builder
- Workers’ Compensation Insurance
The financial expenses of your injured employees are in workman’s compensation. Construction sites are full of danger. Subsequently, you never know when you need to pay for your worker’s injury. Workers Comp includes:
- Medical charges
- Wage compensation for the injured employee
- Ongoing recovery costs related to an injury
- Legal fees and penalties if an injured employee sues the employer
- Funeral costs and death benefits
Get contractors business insurance protection today
In short, these are the most commonly needed insurance covers for a construction company. Still, you can also negotiate additional covers for your company.
Call Contractors Liability on 773-207-5214 to learn about the Contractors’ Business Insurance.