General contractors, specialized contractors, homebuilders, remodelers, and even carpenters need to minimize exposure to risk with construction insurance customized to the hazards of the profession. The right blend of coverage can help you limit your financial risks due to jobsite injuries, equipment damage or vehicle accidents may occur during the course of your construction project.
The specific coverage you choose will depend upon a number of factors, including the size of your company, the number of workers you employ, and the type of work you perform.
Some of the policies you may want to consider include:
- General liability insurance: This critical form of coverage cover your financial risk if you are responsible for bodily injury or property damage to others. If you work in construction, general liability insurance is required in order to get a contractor's license in most states.
- Builders risk insurance: You can think of this as construction liability insurance. It provides coverage specifically for on-site property damage of a site under construction. This coverage varies by company, but may also cover the construction materials on site, prior to installation. The coverage limit is based on the value of the structure when completed.
- Professional liability insurance: If you provide consultation, design work or advice as a part of your professional services, this form of liability coverage can protect you. Also known as "errors and omissions" insurance, this coverage is designed to cover potential claims due to a loss that a client may experience from your services.
- Loss of income insurance: Covers loss of income that results from insured a business interruption, up to 12 months
- Workers compensation: This coverage is required in most states to cover employees' risk of job-related injury, illness or death.
- Pays for medical diagnosis and medical treatment
- Covers about 60% of lost pay if employee cannot return to work
- Commercial vehicle insurance: If you use cars, trucks, vans or any other vehicles for business purposes, commercial vehicle coverage will provide protection for any bodily injuries or property damage to third parties that you cause.
Operating an IT business or internet-based business can put you at risk. You’re likely not only handling your website, but also email, social media and digital assets. You also may have access to other companies' sensitive data. Although you’re operating on a web-based system, the laws of copyright, libel, slander and trademark still exist.
Currently, some insurance companies are hesitant to provide certain types of coverage for internet-based businesses because of liability issues. Keep in mind that your standard business insurance policy likely won’t provide the protection you need if you’re accused of web-based copyright infringement, data breach or data loss.
Information technology liability insurance can provide protection against a number of threats:
- Computer viruses
- Hacking and cyber liability
- Industrial espionage
- DOS (denial of service) attacks
- Data breach and data loss
Another issue that many insurance companies face is the lack of information regarding web-based business risks. Each day, new developments occur that offer benefits to web-based businesses and IT companies and also put them at an increased risk of adding costs to the business. Because insurance companies do not have a fail-proof way to calculate the monetary potential of cyber risks, they will typically write exclusions into IT liability insurance policies to limit their own exposure.
For any insurance company issuing a commercial policy, the name of the game is risk. While all businesses have an element of risk, the types of policies that you need should specifically address individual threats.
Depending upon the products and services your company provides, the size of your company, number of employees and many other factors, you will need some combination of coverage types. The specific corporate insurance in your insurance portfolio may include:
- Liability coverage, in several different forms
- Property and equipment insurance
- Commercial vehicle coverage
- Data breach insurance
- Employee fidelity insurance
- Intellectual property insurance
- Group life insurance
- Inland marine insurance
- Surety and fidelity bonds
- Business interruption insurance
- Workers' Compensation