Steel construction usually involves heavy work and a high risk that something could go very wrong if your work isn’t just right. To protect yourself from the dangers that come with your job, you need the right insurance. Continue reading to learn more about your steel construction contractor insurance coverage options.
What is Steel Construction Contractor Insurance?
Steel construction contractor insurance is a combination of different types of insurance that contractors typically need. Insurance companies bundle these coverages together for your convenience.
Do You Have to Have Steel Construction Contractor Insurance?
Few people are going to hire a steel construction contractor who doesn’t have adequate insurance. Your clients want to know they have recourse in case of accidental damage or injuries. For some licensed or permitted work, you may also have a legal obligation to carry a minimum amount of insurance or post a bond.
What Coverages Does Steel Construction Contractor Insurance Include?
You can choose from a variety of different coverages when you build your steel construction contractor insurance package. These are the most common.
Commercial General Liability Insurance
Most businesses have some type of commercial general liability insurance. It protects you from typical claims such as a customer slipping and falling in your office or tripping over some of your tools. It also covers you for property damage, such as breaking a window or damaging a car while you’re working. Similarly, if you drop a tool or materials while working and injure a bystander, your general liability insurance will also protect you.
Steel contractors also have the risk of your work causing a building collapse or other damage both while you’re working and at some point in the future. This is also a type of incident that’s covered by liability insurance, but your policy may vary on whether it’s part of your commercial general liability coverage or separate professional liability coverage.
Commercial Property Insurance
Liability insurance doesn’t cover your own belongings. If your tools, equipment, or materials are stolen or damaged in a disaster, commercial property insurance is what protects them. Commercial property insurance can also protect your own office, warehouse, or similar buildings against the same types of losses. Property policies vary on what they include, so talk to your insurance agent to make sure you have the right coverage for your needs.
Workers’ Compensation Insurance
If you have employees, the law typically requires you to carry workers’ compensation insurance to protect them. If they get hurt on the job, workers’ compensation pays for their medical expenses and lost wages. This also gives you peace of mind since you don’t have to worry about getting sued by your employee for those same expenses.
Commercial Auto Insurance
Auto claims are a type of claim that insurance companies separate from your liability and property coverages even when the claim relates to liability or property. If you use a personal vehicle for work, your personal auto insurance also separates business claims. To be covered for an auto accident while traveling to or from a job site or moving around a job site, you need commercial auto insurance. You can pick from standard auto insurance options, including coverage for accident liability as well as damage to your vehicles.
What Type of Work Does Steel Construction Contractor Insurance Cover?
Steel construction contractors perform a wide range of work, including framing new buildings, helping with additions, providing support for HVAC installations, and similar jobs. Each type of job comes with different types of risks. You can get insurance for just about any kind of steelwork, and your insurance agent will help you get a policy that’s customized to your needs. That means if you want to start doing new types of work, you may need to go back and update your insurance policy, but it also means you won’t be paying for extra insurance that you don’t need.
Can Insurance Help if You Can’t Complete a Job On Time?
Like any intensive work, steel construction can run into delays and leave you unable to meet your deadline. That could leave you open to contractual penalties or having a client sue you for their lost income or other damages as a result of the delay. You can often add insurance for delays that are outside of your control to your insurance package. This might include things like fires, theft of your tools, or other business interruptions.
Can You Use Insurance Instead of a Bond?
Some clients don’t care if you have insurance or post a bond. They just want a financial guarantee for any mishaps that happen during the job. Others may specifically require that you post a bond. Your steel construction contractor insurance company can often also post a bond on your behalf for a fee that’s only a fraction of what the bond is worth. This is especially helpful when you need to manage your cash flow.
Get a Quote for Steel Construction Contractor Insurance
The cost of steel construction contractor insurance depends on the size of your business, what type of work you do, and who you work with. Your independent insurance agent can help you figure out what coverage you need and where to get it at the most cost-effective price. Dave Mohr Agency helps steel construction contractors in Phoenix, AZ, and the surrounding community. Contact us now to start your quote or to request more information.