Construction contractors face unique challenges and risks daily, from workplace accidents to damages or losses from natural disasters, theft, and vandalism. A contractor insurance policy will help cover these, keeping your construction business afloat. However, some contractors lack crucial coverages, thus facing financial losses and interruption. Being aware of the common contractor insurance claims will help you know the coverages you need to keep your construction business running smoothly while staying covered against the unexpected.
Common Contractor Insurance Claims and the Coverages Required to Cover Them
Personal Injury/Property Damage Claim
No matter how well-prepared, accidents can still happen. For example, a ladder or scaffold may cause physical injuries and property damage to a trespasser or visitor, and in such circumstances, you will be held responsible for the damages.
This is where contractor general liability coverage will come to your rescue by covering:
- Medical bills and damage expenses of the victim
- Lawsuits and related costs if your business is sued for causing third-party injury and property damage
Employee Injury Claim
From an employee falling off a ladder to tripping over construction materials, construction sites are prone to several workplace injuries.
However, you can purchase workers’ compensation coverage to protect your employees. It protects your business against lawsuits resulting from workplace accidents while covering injured employees’:
- Medical expenses
- Lost wages
- Disability expenses
- Rehabilitation and ongoing care costs
- Funeral expenses and death benefits (in fatal incidents)
Traffic Accident Claim
Construction business involves frequent traveling, either be it going from one construction site to another or delivering construction supplies. This increases the risk of accidents involving your business-owned truck or car, thus causing damages to your vehicle, injuries to third parties, etc.
Unfortunately, your personal auto coverage will not protect business-owned vehicles, so you may need contractor commercial auto coverage that covers:
- At-fault accidents causing damages/injuries to others
- Damages to your vehicle caused by another vehicle, theft, fire, and vandalism
- Accidents caused by underinsured or uninsured drivers
- Medical expenses incurred by you and your fellow passengers from at-fault accidents
Stolen Equipment Claim
The loss or damage to your construction equipment and tools can delay your projects and cause financial losses too. However, with tools and equipment coverage, you can get reimbursements for repairing or replacing equipment and tools that are:
Buildings Under Construction Damage Claim
An under-construction building may have several valuables, including tools, equipment, machinery, supplies, etc. What if these are damaged or stolen? Don’t worry; you can cover them with builders risk coverage.
Builders risk coverage helps to protect all your investments on a job site, including:
- Equipment and supplies
- Damage or losses caused by weather
- Onsite theft
- Damage to the building structure
Now you know what coverages are essential to protect your construction business, so customize your contractor insurance policy accordingly.
Also read: Consider what may be excluded from a contractor’s insurance policy
Cover Your High-Risk Construction Business with Artisan Insurance Solutions
At Artisan Insurance Solutions, we are committed to offering a best-in-class contractor insurance policy to protect your construction business at all times against every risk. Contact our insurance professionals today to learn more about our contractor insurance or if you have any questions concerning it.
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