The Contractor Insurance Policies You Need for 2020

If you're taking a "set it and forget it" approach to your contractor insurance, you could be leaving your construction business vulnerable and exposed to a host of ever-changing risks.

When it comes time to renew your annual policies, take a moment to ensure your construction business is covered against the risks it faces today -- which could be quite different than the ones it faced in previous years.

Take a look at the construction insurance policies that will best protect your business in 2020.

Cyber Liability Insurance

Hackers aren't just targeting major corporations. Cybercrime affects businesses of every size across every industry -- including the construction industry.

The construction industry is increasingly relying on smart-devices, smart equipment, and software solutions to operate. Construction firms possess large amounts of private information, such as bid data, designs, materials pricing, employee information, and banking records that are very desirable to hackers.

Cyber attacks are on the rise, year after year. According to a Symantec Internet Security Threat Report, web attacks increased by 56% in 2019. Generally available tools, like routers, voice assistants, email providers, and cloud-based storage, can easily usher hackers into your business.

Cyber liability insurance protects your construction business from the devastating and costly effects of a cyberattack, with coverage for:

  • Electronic data interruption
  • Business interruption
  • Ransoms
  • Systems restoration
  • Customer notification and credit monitoring


Save on insurance for your construction business.


Contractor Pollution Liability Insurance

The construction sector is a major source of air, water, soil, and noise pollution.

So, while it may be a pain to constantly check runoff levels every time it rains, you can understand why the EPA puts forth firm rules on how to protect the environment during your construction projects.

Despite your best efforts to adapt EPA regulations for pollution prevention into your daily talks, meetings, and overall training processes, pollution events happen. When they do occur, pollution events can come with a big price tag for bodily injury, property damage, cleanup costs, defense costs, project delays, cost overruns, and fines and penalties.

Contractor pollution liability insurance is designed to cover:

  • Third-party bodily injury
  • Third-party property damage
  • Cleanup
  • Legal defense

Your coverage may also include business interruption claims, natural resource damages, and fines and penalties.

Tools and Equipment Insurance

Construction site theft is a low-risk, high-reward opportunity for thieves. According to the National Equipment Register (NER), only 25% of stolen equipment is ever recovered.

Among the most common stolen items at a construction site are:

  • Small tools
  • Appliances
  • Wood
  • Heavy machinery

The value of stolen equipment each year ranges from $300M to $1B -- not including tools and building materials, which can be an easy target for thieves.

Protect your investment in loaders, towers, generators, welders, skid steers, excavators, and more with tools and equipment coverage.

Tools and equipment insurance covers everything from high dollar hand tools to expensive heavy equipment when it's on the move and in use for a project.

Builders Risk Insurance

During the course of construction on a project, your investment in materials, supplies, and completed work can be vulnerable. Fire, ruptured waterlines, vandals, theft, or even careless equipment handling could lead to the loss or damage of your investment.

Builders risk insurance, also known as course of construction coverage, protects your investment in a project while it's underway.

If one of your employees accidentally drives a boom truck into the side of a building while removing temporary propane tanks from the site, or a fire breaks out and destroys all the progress you've made and materials you've stored onsite, this essential coverage can get you back on track without a major loss.

Builders risk policies are typically written per-project; once the project is complete, your risk -- and coverage -- ends.

Get Adequate Coverage for 2020

When it comes time to review your contractor insurance coverage, be sure you have adequate coverage for all of the risks your construction business faces for the upcoming year.

It's not enough to renew your general liability and workers' comp coverage and call it a day.

In today's world, there’s a new class of risks that construction professionals face. Whether it's cyber criminals looking to hack, disrupt, and steal from you online,  thieves looking to steal your equipment and tools from a physical project site, or simply the risk of an accident or pollution spill caused by human error, construction insurance can provide a safety net to protect your construction business.




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