Why Do You Need Construction Insurance?

construction insurance


Your construction insurance can make the difference on whether your construction project makes a profit or loses money.  To not lose money, it is important to make sure you have the right coverage.  The coverage you require will depend upon factors such as the size of your company, the number of employees and the type of work you perform.

Some policies you may want to review include:



  • General Liability Insurance: General Liability Insurance for construction companies is coverage that can protect your business from a variety of claims including bodily injury, property damage, personal injury and others that can arise from your business operations.
  • Builders Risk Insurance: You can think of Builders Risk Insurance as Construction Liability Insurance.  For a site under construction, this insurance provides coverage for onsite property damage.
  • Professional Liability InsuranceIf your business provides consultation, this form of insurance can protect your organization.  This form of liability coverage is designed to cover potential claims due to a loss that a client may experience from your services.
  • Workers CompensationWorkers compensation insurance is a form of insurance that covers the medical and rehabilitation costs of your employees if they’re injured on the job. (It also covers some lost wages.)
  • Construction Vehicle InsuranceConstruction insurance for vehicles is essential if you use any vehicle for construction or contracting work, and is an essential part of your business protective plan. It provides the coverage you need to avoid the potentially high cost of vehicle repair, medical expenses or potential lawsuits as a result of unforeseen auto accidents.


Workers Compensation Laws – State by State Comparisons

workers compensation laws by stateWorker’s compensation insurance requirements for employers vary from state to state. The differences can be vast and knowing what insurance requirements your state sets out for you is essential to protecting yourself as a business owner. Some states never require worker’s compensation insurance, some always require it, and for some, whether it is required depends on the number of employees your business has.

For example, in Massachusetts , all employers are required to carry workers’ compensation insurance covering their employees, including themselves if they are an employee of their company. This requirement applies regardless of the number of hours worked in any given week, except that domestic service employees must work a minimum of 16 hours per week in order to require coverage.  However, in Texas, private employers can choose whether or not to carry workers’ compensation insurance coverage.

Check out WorkersCompensation.com for more information regarding state by state laws.