|
Your small construction business needs
several of the same insurance coverages as any other
business, as well as other types of insurance specific
to your industry. If possible, use an insurance agent
who has experience with your type of business and who
works with insurance companies that specialize in construction
risks. Your agent may be able to find policies that
package property and liability coverages in one policy
specifically to meet the needs of small construction
firms.
PROPERTY INSURANCE
You may need property insurance to
cover the real property your company owns and the personal
property used in the business, such as office furnishings
and computers. Your biggest personal property loss exposures,
however, may involve valuable machinery and equipment
that moves around from job to job and is not covered
by standard property insurance. Such movable property
is insured by contracts insurers call floaters.
An installer’s floater covers
all kinds of machinery and equipment during transit,
installation and testing at the purchaser’s premises.
Even building materials may be covered, but the more
usual coverage is for equipment or machinery that only
contractors install, such as heating or air conditioning.
The policy can be written to cover a single job or on
a reporting form, meaning that you provide the insurer
with information about each new contract you undertake.
A contractor’s equipment floater
insures any type of movable equipment not meant to move
on public highways. This includes such things as cranes,
cement mixers, engines or power drills.
A tools and equipment floater covers
the insured property wherever it is used and may include
such items as hand tools, power drills, hoisting machines
and power pumps.
While under construction, a building
has an ever-increasing value as more of it is completed.
To assure the building is covered relative to its value
at the time of a loss, there is a special type of policy,
known as builders risk insurance. With this policy,
if a tornado destroys the building when it is half finished,
the policy (if it is for replacement value) covers one-half
of the value the building would have had if completed.
If a tornado wipes out the building when it is three-fourths
finished, the policy covers three-fourths of the completed
value. Alternatively, you can report an actual amount
for value completed to the insurance company each month
and that is the amount of coverage should a loss occur
that month.
LIABILITY INSURANCE
Since there is always a possibility
that someone will file a lawsuit against you claiming
to have been harmed by your work, you will almost certainly
need liability insurance.
You may want to require your subcontractors
to have Owners and Contractors Protective Liability
coverage (OCP). This coverage protects either a property/businessowner
or a general contractor from possible liability arising
from the negligent acts of an independent contractor
or subcontractor hired to perform work on behalf of
the insured. The actual purchaser of the policy is the
independent contractor or subcontractor, but the protection
is for the benefit of the property/businessowner or
general contractor for whom the work is being done.
BUSINESS AUTO INSURANCE
Your personal auto policy probably
provides coverage for some business use of your truck
or other vehicle. A personal auto policy is unlikely
to provide coverage, however, if the vehicle in question
is used primarily in business. It will not provide coverage
for any vehicle owned by a business. For those vehicles
you must have a business auto policy.
Should you be driving your personal
truck for a business purpose and get into an accident
for which you are liable, an injured person could sue
you personally. Will your personal auto policy have
enough coverage to pay all the damages? If not, a lawsuit
may be filed against your business. If you use personal
vehicles for business, you want to be sure you have
high enough limits to protect your business. You should
discuss this with your insurance agent.
Above ©Copyright
Insurance Information Institute.
WORKERS COMPENSATION INSURANCE
The Connecticut Workers' Compensation
Act was first enacted in 1913. There have been numerous
changes to the Act since that time, but the main premise
of the Act has always been to provide wage replacement
and other benefits, as well as medical treatment, for
those employees who have been injured, disabled, or
killed while performing their jobs. In most cases, such
employees are ONLY eligible for benefits under the Workers'
Compensation Act and are prohibited from suing their
employers for benefits. (However, employees and/or employers
may sue a third party, if they believe that another
party or a product was responsible for an employee's
accident.)
Be sure that your in-home business
is properly and adequately insured. Our agency can help
you get the most appropriate coverage for your home
business.
Any other questions? We'll be glad
to help. Call 860-283-0278
.
|
