Photo from Construction Week Online
Insuring your construction business is about handling risk management in your line of work and also moving that risk to other bodies, in this case, your insurance company provider. Furthermore, it’s about protecting your business, your employees, and all the other things that help you operate effectively.
Insurance offers protection for your customers as well. The errors you made on the job can be expensive for your clients and also for you and your team. Providing bad advice to your clients or being unable to finish construction projects according to the given deadline might cost your customers money, which can inevitably result in claims being filed against your company.
Therefore, having construction insurance in place that alleviates those kinds of risks may help you acquire more clients since nobody wants to work with contractors that don’t have this type of coverage. As reported by Small Biz Trends, the construction industry has the lowest survival rate in the U.S. Only 36% of construction businesses survive the fifth year from the start of their operations.
Additionally, 75% of small construction businesses fail to remain open after the first year and close because of financial weakness and poor risk management. Insurance protection increases the odds of survival of newly founded construction companies by 30%.
This article guides you through how the proper insurance policy can positively affect your business. So, read below to find out some of the benefits the proper insurance can have on your construction business.
Tailored Business Insurance Is The Smartest Idea In Case You Need Financial Compensation
Insurance is a financial backing that safeguards construction businesses from disastrous financial blows due to job-related accidents. However, it would be best if you didn’t buy a ready-made insurance plan for your unique construction business needs.
Every construction business needs a singular risk insurance plan according to its unique business. The construction trades insurance packages include custom-tailored general liability coverage tailored to the specific risks your business faces, including coverage for bodily injuries, property damage, and libel, slander, and defamation. With a plan like this, you’ll have a strategic plan in place for any unwanted events that might happen and coverage in case your business needs a quick financial fix.
Besides, your clients count on your expertise and skills in getting your job done correctly and in due time. Nevertheless, sometimes things don’t go according to plan. Equipment may break, schedules may overrun, and incidents may happen. So, from having customers claim an error in your work cost them money to property damage and everything in between, you must have proper insurance that assures you your business is covered.
Photo from Construction Week Online
Your Insurance Plan Protects Your Employees As Well
Your most valuable resource is not the products or services you provide, the equipment you have and maintain, nor your brand you struggled to build over the years. Instead, your most valuable resource are your employees, and it’s worth it to have them protected in the case of a potential accident.
Workplace accident insurance is mandatory to include in your insurance policy and is most definitely something that a construction business can exist without it. Construction is a high-risk job, and you need to protect your workers and give them assurances that you will help them recover financially from any work-related injuries.
It’s Your Forte In Case Of A Lawsuit
We live in a combative society. In the event of a liability claim or lawsuit, without having proper insurance, your construction business can collapse. One broken contract. One unexpected accident. One disgruntled worker, and it might be over. Even if you win over the lawsuit, you could still go out of business as a result of the expenses you make for your legal defense.
So instead of worrying about what might happen, proper insurance for your construction company will give you peace. That will enable you to remain focused on what really matters, which is operating a successful business.
Insurance Will Help You With Any Technical Difficulties
In a hands-on profession like construction, you can’t properly function without adequate gear and equipment. If anything breaks or gets lost, for instance, you need to make sure that you may get back up and operate again in no time.
On the other hand, if you don’t have it, you take the chance of losing precious contracts or having to cope with unhappy clients while your ongoing projects come to a halt. Insurance provides cover for all your work equipment, and in case anything happens to it, you won’t be left paying for replacements or repairs alone, and you will get back to operating as quickly as possible.
It Will Protect Your Business From Potential Disagreements With Clients
You work hard to ensure the designs are verified and that work is always performed to the highest possible standard. However, things still might go wrong.
Whether there’s a genuine inadequacy in the design of your project or its implementation, or you maybe have a client who believes there’s a problem with what you disagree with, there is the possibility for legal action that you may have to deal with it. For this reason, it’s essential to protect your business, your brand name and keep any disturbance to a minimum.
Photo from Build Review
Your Work-Related Contracts May Require You To Have Insurance
In terms of contracts and insurance, several parameters come into play. For example, if you rent your worksite, you might need to have an insurance policy (in case your landlord’s policy doesn’t cover it). Furthermore, if you loan money to finance your constructions and buildings, operations, or equipment, the loan agreement is most likely to contain an insurance requirement.
Client contracts can specify that you carry insurance just in case things don’t go as planned. Sometimes freelance construction workers need insurance very much but don’t realize it until they get a job and lose it due to not having had one.
You can never know what can happen in construction. It is highly dangerous and risky, but you can get an additional layer of protection with the right construction insurance. Find a company that will do its best to make sure that you will be well-protected with a tailor-made and comprehensive insurance policy. To understand more about its benefits, schedule a consultation with an insurance professional right away.