{"id":12495,"date":"2020-09-01T17:29:43","date_gmt":"2020-09-01T17:29:43","guid":{"rendered":"https:\/\/www.openbusinesscouncil.org\/?p=12495"},"modified":"2021-06-16T16:14:39","modified_gmt":"2021-06-16T16:14:39","slug":"what-forms-of-insurance-do-construction-small-businesses-need","status":"publish","type":"post","link":"https:\/\/www.footballthink.com\/what-forms-of-insurance-do-construction-small-businesses-need\/","title":{"rendered":"What Forms of Insurance Do Construction Small Businesses Need?"},"content":{"rendered":"
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Owning a construction business comes with a lot of inherent risks. Besides the dangers your employees face<\/a> daily, there are also the dangers that low-quality work or mistakes can cause. Even the smallest mistakes can be deadly. If you own a construction business, there are several insurance policies you’ll want to ensure you have to protect your business in the case of an accident.<\/p>\n Workers’ Compensation<\/strong><\/p>\n Most U.S. states require workers’ compensation. It covers employees’ medical care, rehabilitation, cash benefits, and supplemental benefits after a work-related injury. Workers’ compensation partially replaces lost wages while recovering from an injury and provides death benefits to workers’ families in the case of a work-related death.<\/p>\n Given the high-risk environments and physical demands of the construction industry, it’s especially crucial to make sure your business has workers’ compensation. Doing so will protect your employees’ health and financial situations. It also dissolves much of your business’s legal burden in the case of a work-related death or injury.<\/p>\n <\/p>\n General Liability Insurance <\/strong><\/p>\n An independent contractor<\/a>, or 1099 contractor, is self-employed and controls the work they perform. While contractors don’t have to have general liability insurance, clients often won’t work with contractors if your business doesn’t provide coverage for 1099 contractors<\/a>.<\/p>\n Construction businesses often add 1099 contractors to their general liability insurance policy.<\/p>\n Construction independent contractors are at risk of being injured while lifting heavy materials, using dangerous equipment, and working in a high-risk environment. Adding contractors to your general liability policy<\/a> protects your business’s finances if a contractor is injured.<\/p>\n <\/p>\n Professional Liability Insurance<\/strong><\/p>\n Professional liability insurance is mandatory for those in the construction field due to the high risk of potential negligence claims. This insurance will cover your business if your workers don’t complete a construction project as planned.<\/p>\n Professional liability will also provide financial protection if you don’t deliver on promised services, are found negligent, or if your work contains errors or other oversights. Adding professional liability to your general liability insurance can save your business money in the long run.<\/p>\n <\/p>\n