As a small business owner, your focus is on the growth and prosperity of your company. If you are in the construction industry, many coverages are required by the state, and it makes good sense to manage your risks. As a contractor, you are required to have a general liability policy if you are licensed with the State of Florida. If you are a sub-contractor, your general contractor is going to require liability insurance before you step on the job. Workers compensation coverage is required by the state of Florida if you have one employee and if you are incorporated or a limited liability company, you are the first employee!
I often hear from my clients that the house or structure that is being built is insured too many times over its value. They believe that you can add all the contractors’ coverages together and get a total amount! Hopefully, the contractor who is at fault is going to have his policy pay for the claim.
According to legal experts, most job site lawsuits are generated because of misinterpretation of the law and the responsibilities of all parties involved. Confusion surrounding contractual and liability issues often escalate into court action. This scenario can be avoided by clearly defining expectations and outcomes up front. Read your contract! The word contract is in your title! Understand what your responsibilities are and let your insurance agent know also.
Construction insurance isn’t only about injuries, however. This essential coverage outlines payment terms, coverage definitions and responsibilities after a loss. Remember, poor workmanship on your part is never covered. What may be covered, although, is the damage your poor job did to someone else’s work. Make sure you have this coverage. Ask your agent to explain all your coverages.
Some small construction companies rely on their agent to place coverage for them without understanding what kind of coverage they have.
For instance, general liability insurance protects your business against the result of your operations that hurt someone (bodily injury) or damage somebody else’s stuff (property damage). Worker’s compensation provides coverage for your employees while they are working for you on a job site. Builder’s risk insurance provides coverage for the structure that you are building for acts of god, or collision or most risks of physical damage. Business Auto provides coverage for your vehicles and for the operations of loading and unloading at a job site.
Given this information, it is essential that you have a risk management review of your operations, make informed decisions as to how you are going to fund these risks and choose the proper insurance coverage to protect you and your business. As a trusted and qualified professional insurance agency, we can help safeguard your company against all your identified exposures and keep your business thriving for years to come. Contact us today to get started.