When it comes to insuring your own construction business, you need to make sure you’re covered from every angle. Accidents happen, mistakes are made, and in the world of construction they can be costly. Without insurance, accidents and mistakes could end up putting you out of business.
If you’re just about ready to renew your business insurance, it’s worth taking the time to consider whether your policy is all-encompassing enough. Here are some of the most common construction insurance mistakes you should avoid:
Failing to protect tools and equipment
When working as a contractor, your tools are an extension of yourself. They’re vital to getting every job done – without them, you can’t provide the service that your client has paid for. So why would you fail to insure them?
Whether your tools involve heavy machinery and plant, or items like paintbrushes, pipe cutters and small power tools, having the right protection for them is crucial. If your tools are lost, stolen or damaged, you need to know that your insurer will be able to cover the cost of replacements – or you could end up canceling jobs and losing business.
Not taking out employer’s liability insurance
Some construction insurance policies offer employer’s liability insurance as standard – but some don’t. Without this kind of insurance, you could end up footing the bill and paying damages if one of your employees gets injured on the job. Construction can be a dangerous business, with lots of heavy machinery, chemicals and people working at height. Injuries sustained on construction sites are often quite serious, and compensation can run into the hundreds of thousands.
Double-check that your existing policy has employer’s liability insurance. If you do, make sure it offers enough financial protection for your business in the worst-case scenario. If you don’t have it, look for a policy that includes it, or allows it as an add-on.
Failing to insure subcontractors
Your construction insurance policy may have a section on sub-contractors – it’s vital that you delve deeper into this part of your policy to check that you’re covered. If you’re engaging with subcontractors as part of your work, you may need public liability insurance on top of your regular policy. This ensures you’re protected in the event of a mistake or accident on the part of the subcontractor.
There are some cases where your subcontractor may have their own public liability insurance policy in place – but you can’t always rely on this. Protect your business with the appropriate coverage, and you’ll ensure your profits remain in your pocket, rather than being paid out to others.
For more information about construction insurance, and to discuss a range of add-ons to your existing policies, get in touch with the team at Morpheus Insurance today.