If you work in the construction industry and decide to start your own business, you will need to make sure you obtain the proper license to do this, and you must also purchase the right types of insurance coverage for your business. There are several different types of coverage you will need to have for a new construction business, and each type offers a different type of protection. Here are three important types of insurance to look into.
Liability insurance is a necessity for all types of businesses, and it is designed to protect the assets a business owner has. If someone gets injured on your jobsite, your liability insurance will cover the injuries and damages. Your liability coverage also protects you against someone who may sue you for these injuries. With this coverage, the person suing you would not have the ability to sue you for the things your company owns.
Builder's risk insurance
Another important type of coverage you will need for your company is builder's risk insurance. This is a unique type of product that provides coverage over the work you are currently doing. For example, if you frame homes and the wind blows down the work you have completed, you can file a claim with your builder's risk insurance for your loss. This coverage can also protect almost all other aspects of the building process, including damage that occurs to concrete and roofing materials.
Workers' compensation insurance
You will also need to protect your new business by purchasing workers' compensation insurance. This type of insurance is mandatory for all business owners, and it is designed to cover injuries that occur to your employees on your jobsite. When you hire people to work for you, they are taking a risk that they may be injured. If you do not have workers' compensation insurance, your employees could sue you if they are injured. If this happens, you take the risk of losing your business.
New companies often pay higher rates for this particular type of insurance, but as time passes the rates can go down, as long as the company does not file any claims. The rate paid is based on an average of a company's losses for a three-year period. Because a new company does not have a history, the insurance company may set the rate a little higher than average at first.
The best way to make sure your new company is covered thoroughly is by contacting an insurance agent that specializes in commercial insurance. To learn more, contact an agency today.Share