Construction Insurance in Alabama

The Importance of Construction Insurance in Alabama

construction insurance alabama

If you own a construction business, you should consider purchasing a construction insurance package. These policies are customized to meet the unique needs of your business, and include everything from coverage for lost business revenue to legal and court fees. A small construction company might pay as little as $25,000 per year for the insurance, while a solo construction worker may only need a few thousand dollars per year, as they usually use less equipment and do not need workers’ compensation coverage.

General liability

If you’re involved in construction in Alabama, you must consider purchasing a general liability construction insurance policy. This type of insurance will cover any legal charges that may result from a project, regardless of whether the project was completed to a high standard or not. You can even get legal fees for advertising injury or bodily injury. Alabama’s laws are strict regarding the issue, so it is vital to purchase this type of insurance before you begin construction.

Builder’s risk

In Alabama, obtaining a builder’s risk insurance policy is a relatively straightforward process. However, it is imperative to understand the risks inherent in the construction industry. Builders’ risk insurance in Alabama protects the contractor against losses that might result from construction-related issues such as fire and theft. It also reimburses the contractor for lost profits and business identity theft. In Alabama, these risks are not uncommon, but should be carefully considered.

Subrogation

Subrogation is a legal mechanism through which an insurance provider can seek reimbursement from another party for losses that were caused by a covered incident. Subrogation is very advantageous to insurance companies because it helps them minimize their payout time and ensure that the settlement process runs smoothly. Subrogation generally involves the insurer, insured, and offending party. Here are some of the benefits of subrogation for construction insurance in Alabama.

Worker’s compensation

Worker’s compensation is an important part of a construction insurance Alabama policy. It is particularly important if you employ workers in industries with high rates of injury. Although most employers take care to create an environment in which employees can safely work, accidents can still occur. A simple tool or piece of equipment can malfunction, and an employee may receive an eye injury. If you’re a contractor, it’s important to purchase workers’ compensation coverage to cover the costs of accidents that may occur on the job.

Cost

In addition to paying premiums on your Alabama construction insurance policy, you must also carry worker’s compensation insurance. This is mandatory for all businesses in Alabama with five or more employees, and it does not cover independent contractors, which are considered true contractors. In addition to this, Alabama businesses are also required to purchase commercial auto insurance, among other policies. Other coverage varies based on your business type and size. A professional insurance agent can assist you in finding the right coverage for your business.

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