Choosing Construction Insurance Policies

When a company wants to begin a construction project, there are many things that need to be in place before employees can be hire and the project can get underway. One of the most important assets to a construction company when working on a project is the construction insurance policies. There are a few types of construction insurance policies to choose from, and each has its advantages for the construction company.

The main function of construction insurance it to prevent the construction company from being liable for injuries, accidents and death at the construction site. Many types of construction insurance provide reduced rates for companies that hold additional insurance policies for the equipment owned and health insurance policies for employees.

Construction companies can choose an insurance policy that provides coverage for all projects they complete while under the insurance, or they can choose to purchase construction insurance on a per-project basis. Some of the most common types of construction insurance include:

Construction Liability Insurance

The only way that a construction company can begin building on a project is if the company can show a city building inspector proof of liability insurance. The function on construction liability insurance is to prevent the company from being liable for accidental injuries or death on the job site. There are a number of levels for this type of insurance. A company can determine what level of liability insurance they need depending on the specifics of the project or the typical complexity of the average project for the company.

Employee Insurance

Construction companies must also consider the safety and security of their employees. Construction workers typically pay a higher rate on health insurance because of the dangerous work environment. Both employers and employees have to take the hit on this higher rate, so it is important for the company to also offer workers' compensation, medical and accident insurance. Having these policies available to employees can also provide a decrease in the rate a company pays for liability insurance.

Heavy Equipment Insurance

One other important type of insurance for construction companies is heavy equipment insurance. Each piece of construction equipment can cost thousands of dollars to purchase new or used. There is also a high cost to keep this type of equipment maintained. Since construction sites are also very vulnerable to natural disasters, theft and other types of damage, getting heavy equipment insurance will significantly reduce the amount of money a company would have to pay to replace equipment.