Concrete Business Insurance

Insurance Requirements for a Concrete Business

concrete business insurance

Whether you’re a general contractor or a subcontractor, you should consider the insurance requirements for your business. You need to be listed as an additional insured on your subcontractors’ policies. Otherwise, you may have to pay a higher premium because of uninsured subcontractors. It’s also important to collect certificates of insurance from your subcontractors because insurance companies base their premiums on the total number of sales a concrete business makes.

Exclusions

Many insurers exclude certain activities from standard product liability and public liability policies. For example, concrete businesses may not be covered if they offer expert advice or provide design services. While these activities may not be covered by standard liability policies, they can be covered under a professional indemnity policy. This type of insurance pays for legal fees and defense costs in the event that you are found to have provided negligent advice to a customer.

Other types of property damage may be excluded from general contractor policies. In some cases, these policies exclude work performed by subcontractors. If a subcontractor performs work that was performed improperly, the general contractor may be liable for the costs of the incorrect work. To address this issue, insurance companies are increasingly excluding coverage for subcontractor-related activity. However, you may be able to get coverage for work performed by subcontractors in certain instances.

Limitations

The standard public liability policy excludes certain activities, such as design and advice. Because concrete businesses design products to very exacting standards and complex specifications, many insurers do not cover these activities. Instead, they recommend that concrete businesses take out a professional indemnity insurance policy, which pays for legal fees and other costs associated with defending claims. Likewise, such policies are often contentious and require specific documentation from the insured. In addition, insurance policies are often limited in what they cover, so it is important to understand what is and isn’t included in each policy.

Concrete businesses are at a high risk of property damage. Because they use heat and flammable materials, they are especially vulnerable to fire and other perils. When disaster strikes, insurance coverage will cover the cost of repairing or replacing damaged property. Depending on the policy, this type of insurance may also cover other properties that are on the premises, including construction equipment and inventory. In addition to buildings, commercial property insurance may also cover personal property.

Cost

Depending on the scope of your concrete contracting business, you may need to purchase commercial general liability insurance. While this type of insurance is suitable for most businesses, those that specialize in concrete may also need malpractice and professional indemnity insurance. For these additional protections, it’s recommended that you speak with a professional insurance company. It’s important to know that despite the concrete business’s seemingly low risk levels, it still entails considerable risk.

General liability insurance covers your business from legal claims based on your negligence or wrongful acts. For example, if your concrete contractor had neglected to clean up a driveway after a year’s time, a client could file a lawsuit for the cost, and your insurance company would cover the costs. Also, your coverage would cover the legal fees that result from a lawsuit. A higher limit means more protection. Depending on the size of your company, you may want to consider a policy that covers a higher limit.

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