Embroker’s Construction and Contractors Practice

Redefining the way construction companies purchase insurance, utilizing technology and deep insurance expertise from brokers who genuinely understand the industry.

Insurance for Construction Companies

No matter how experienced you are and how cautiously you run your construction business, unpredictable accidents are always a possibility in this high-risk industry. According to a recent report by the Associated General Contractors of America (AGC), the industry is steadily growing, with employment on the rise in construction in 256 out of 358 metro areas.

However, that doesn’t mean that working as a contractor is any less stressful. A recent study reported on by USA Today ranked construction as the 13th most dangerous profession in the U.S., reporting 15 fatal injuries per 100,000 workers and a total of 24,650 nonfatal injuries in 2016 alone.

Combine these accident and injury-related statistics to the additional risks of unforeseen events – both freak accidents and natural disasters – that could put your entire construction projects, properties, and equipment in danger at any time, it’s easy to see why insuring your construction business is so important.

Getting the right contractors’ insurance is important for any construction professional looking to achieve sustainable growth. Transfer risk via insurance enables you to focus on growing your construction business without worrying that every possible misstep or unforeseen problem could lead to serious setbacks.

We wrote this guide to help you, the reader, understand both the basics of insurance for contractors and construction companies as well as some more advanced considerations. Our hope is that you walk away from this article a more empowered buyer, with a better understanding of the risk you can transfer to other parties via the right insurance coverage.

If you’d like help, we’d invite you to talk with a broker or get started by creating an Embroker account. Our highly experienced insurance experts will work with you to gain a deep understanding of your unique needs before negotiating a customized policy on your behalf. For more clarity on pricing, your business will be benchmarked against similar construction firms and contractors in your vertical.

Why Do Contractors and Construction Companies Need Insurance?

Insuring your construction company is all about managing the risk involved in your profession and transferring that risk to other entities, ie. your insurers. But more than that, it’s about protecting yourself and the people and things that make it possible for you to make a living effectively.

Contractor insurance also provides protection for your clients and your staff. Remember, mistakes made on the job can be as costly for your clients as they can be for you and your team. Giving your clients bad advice, being unable to complete construction projects by the deadline; these types of issues can cost your clients money, which will inevitably lead to claims being filed against you. Furthermore, having insurance in place that mitigates these risks can help you land more clients since many will not work with contractors who lack this type of coverage.

Of course, workers’ compensation insurance is mandatory in just about every state and is certainly something that no construction company can exist without. Construction is a high-risk industry and your workers need to be protected and given assurances that you will be able to help them financially recover from workplace-related injuries.

Insurance can also protect the public, especially if your construction projects take place in areas that are heavily populated. Accidents can happen when there are people constantly located in the vicinity of your construction site and insurance can help cover any financial losses sustained from accidents related to third-parties.

Highly-Publicized Examples of Insurance at Work for Contractors

Construction Insurance Costs

As is the case with most types of insurance, there are many different factors that needed to be considered before determining how much your construction insurance is going to cost. Premiums will be determined by standard factors such as the size of your company, the number of employees working for you, whether there are subcontractors involved, how big your projects are generally, what your claims history looks like, the locations of your projects, and more.

Another aspect that could factor into policy price is the duration of your policy. If you have builder’s risk coverage for a project that is going to take you more than a year to complete, for example, then you will have to pay more for it. If you decide to buy insurance for a construction project that you have already started prior to getting the insurance, you might see higher premiums in this case as well.

Get A Quote

Getting Started

Not sure if you’re getting a fair deal?

A frequent question we hear — and a common problem with construction insurance underwriting in general — is that no one really knows how an underwriter arrives at a premium.

Embroker believes in giving our clients better choices using data and transparency. We benchmark all of your policies against similar construction companies and contractors in your vertical, then procure multiple quotes from an independent broker. We also cross-reference your costs with firms of comparable size, policy limits, claims history, and risk tolerance.

Now that you have a better understanding of construction insurance, you may be wondering how all of this affects your business and where to go from here. If you need more help or information you can reach out to our team of expert brokers. If you prefer to get started on intelligent quotes, you can get started by creating an Embroker account today.

Having a quality construction insurance program in place and a broker who can help you navigate the terms and conditions of your policies, as well as the potential claims processes, can save you money and, more importantly, time.

Embroker is the easiest way to intelligently insure any business. We’re here to help!

Additional Resources on Insurance for Construction Companies:

Surety bonds guide

Wrap-up insurance: OCIPs and CCIPs