Those hard-working men and women in the construction industry understand the many risks and exposure they face on a daily basis. Home contractors, builders and remodelers face risks each and every time they walk onto a construction job site. As plumbers, electricians and HVAC professionals have their own special job hazards that are unique to their trades, they can purchase construction insurance to offset the costly errors and mistakes, as well as any on-the-job injuries that might occur. For these reasons, employers and contractors need coverage such as liability and workers compensation to protect themselves and their workforce.
There are a staggering number of financial pressures and liabilities in the construction industry. Many of these artisan contractors enter into agreements with general contractors that specify the types of insurance coverage, limits and special endorsements (additional insured, waiver of subrogation) they must carry in order to secure the job. The purpose of these endorsements is to transfer the risk from the general contractor to the specialty contractor, creating broad liabilities for the subcontractor that were never contemplated in the forms or the rates being provided by insurance companies.
Surety Bonds are another important aspect of protection
As any artisan contractor knows, they need to produce certificates of insurance and construction bonds in order to enter into contracts with their clients. When a surety bond, performance bond or other documentation to support a bid is needed, a surety company can provide this service that enables a contractor to enter bids and be competitive in the market.
There are assorted bonds available for every step of the project, from start to finish, and it can be a fairly simple process to secure a particular coverage that makes sense for any businessperson, and may include:
- Construction bonds
- Performance bonds and/or surety bonds
- Commercial vehicle insurance
- General liability
- Umbrella liability
In addition, workers compensation is also generally required for contractors who hire actual employees (these are generally not subcontractors, but are paid employees of the construction company or the contractor). Speak to an agent about any questions or concerns, someone experienced with working with policies that cover construction projects.