Like other businesspeople, general contractors cannot afford to ignore insurance coverage. Common perils in this space include health and safety hazards, professional liability, and business interruption, among others. It's important to note that contractor insurance is an umbrella term for various insurance products aimed at general contractors. Here's detailed information on this topic.

Why Contractors Insurance Texas is Important

Generally, working in the construction industry involves risks such as bodily injuries and lawsuits. The construction industry is among the top most dangerous industries in the U.S. It is worth noting that being a contractor puts you at significant risk of lawsuits emanating from workplace injuries. Therefore, the right insurance coverage is necessary to protect your business from any aftermath of workplace injuries, including financial loss.

Common Insurance Coverage Options for Contractors in Texas

While workplace accidents are the significant risk your construction business can face, there's more. For instance, a client may sue you, citing shoddy work. Also, your business vehicle can knock a pedestrian down and attract financial losses to your business. With this in mind, ensure you carry all the contractors insurance policies needed for your business. Typical contractor's insurance policies include:

1. Workers' compensation insurance - This policy shields your construction business from monetary losses originating from work-related accidents. For example, if one of your employees falls from a tall building, breaking their legs, worker's compensation coverage will pay for the treatment costs and lost wages. This policy also covers rehabilitation and funeral expenses in case of a disability or fatality, respectively.

2. Professional liability insurance - Sometimes, a client may sue you if you make a professional mistake that costs them. For instance, if you prepare the wrong quotation for a construction project, the client may file a lawsuit against you. Take note that you don't have to make a mistake for a client to sue you, which is why you need professional liability coverage.

3. Builders risk insurance - Buildings under construction can still face damage from perils such as natural disasters that bring them tumbling down even before completion. Protecting your construction project from all risks, including fire, vandalism, and natural disasters, are prudent. The builder's risk insurance policy covers your business from losses in case your uncompleted building suffers a peril.

4. General liability insurance - This policy pays for any losses or bodily injuries your business causes to third parties. For instance, if a brick falls on a quality control officer visiting your construction site, injuring them, you will likely have to pay for the treatment and other related costs. With general liability insurance, you will rest assured that your business finances are safe.

5. Contractor's tools and equipment insurance - Running a construction business requires you to have some expensive tools and equipment. If a piece of costly equipment suffers damage, you will likely spend a lot on repairing or replacement. The good news is that having a contractor's tools and equipment insurance coverage saves your business from possible financial losses related to equipment damage or loss.

Protect Your Commercial Property with Bema Insurance

If you are looking for all-inclusive contractor insurance in Texas, contact our insurance professionals today here at Bema Insurance. We will customize your contractors insurance with the right policies that protect your business at all times and against every risk.