Construction Insurance

What is the NAICS?

The NAICS is the governmental standard for classifying businesses by the work they do. It’s used in the insurance industry to help account for the various levels of risk that different sectors have.

What Coverages Do Construction Policies Offer?

Most construction policies can be adjusted to meet a specific business’ coverage needs, so not all policies offer the same list of protections. Nonetheless, there are many coverages that insurers make widely available through these policies. A few of them are:

• General Liability Coverage, which might cover a range of potential accidents
• Commercial Auto Coverage, which might cover vehicles owned by a business
• Inland Marine Coverage, which might cover equipment and supplies while they’re in transit
• Equipment Breakdown Coverage, which might cover certain equipment malfunctions
• Owners and Contractors Protective Liability Coverage, which might cover damage caused while working

Do Construction Policies Include Workers Compensation?

What businesses need workers compensation and how this insurance is purchased varies by state. In some states, construction policies may have workers comp among their coverages. In other states, workers comp may be purchased separately if it’s needed.

Can Businesses Cancel Their Construction Policies During Winter?

Businesses in cold climates might want to cancel their insurance policies during the off-season in order to lower their overhead, but completely canceling policies isn’t necessarily a good idea.

Canceling a policy altogether can leave a business’ equipment unprotected and create a coverage gap. Should equipment be damaged while in storage, the business may have to pay out-of-pocket for repairs or new equipment. The coverage gap might lead to higher rates in the future when a new policy is instated.

Rather than canceling a policy, businesses can work with a knowledgeable insurance agent and adjust coverages for the off-season. An agent who specializes in this type of commercial insurance will know how to reduce coverages without leaving equipment unprotected or creating a coverage gap.

How Much Do Construction Policies Cost?

Because so many different businesses need construction policies, the premiums charged for these policies can vary a lot. A few factors that often influence how much a business pays for coverage include:

• What type of construction a business is involved with
• Where a business is located
• How large a business is
• Whether a business has previously filed insurance claims
• What coverages and limits a business selects

Comparing quotes with an independent insurance agent is an easy way to find out how much different insurers will charge a particular construction business.

How Can Businesses Get Construction Insurance?

For help finding construction insurance, contact the experienced and independent agents at World Insurance Associates. Our agents have helped many construction businesses get the coverages they need, and we’re here for your business too.