Insurance for Site Preparation Contractors
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What Insurance Do Site Preparation Contractors Need?
General Liability Insurance protects your small business against claims of third-party bodily injury and property damage, reputational harm and advertising injury. It covers medical bills, repair costs & legal fees.
A Fiduciary Bond (or Surety Bond) protects a fiduciary - someone who is granted power over another person’s interests or assets via a will or contract - from being sued for alleged fraud, embezzlement, or dishonest acts.
Professional Liability Insurance (or E&O Insurance), protects your small business from claims of mistakes, negligence or malpractice made when providing your services that caused sobody financial loss. PLI covers your legal defense costs, damages and settlements.
Workers Compensation covers your employees' medical costs and lost wages while recovering from a work-related injury or illness. The employee gives up the right to sue your company in return for receiving cash and benefits from Workers Compensation. In some states it’s mandatory for businesses!
Frequently Asked Questions
Why do Site Preparation Contractors need insurance?
Companies categorized under this industry work mainly in site preparation activities such as grading and excavation, the demolition of buildings, septic system installation, and earth moving and land clearing. Other service includes the rental of construction equipment with an operator.
Site preparation contractors need insurance as it helps cover for the risks that your business could face, particularly lawsuits. The insurance will cover the defense and court fees that would otherwise be disastrous to your business.
What risks do Site Preparation Contractors face?
Below are some common risks site preparation contractors can face:
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A customer slips in a puddle of water that you are about to clean in your office. This causes your client to sue your business for a slip and fall claim.
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One of your employees fails to perform the contracted work and your client sues your business for the damages.
How much does insurance for Site Preparation Contractors cost?
There is no fixed cost of insurance for site preparation contractors as the cost of insurance varies according to the size of your business, the number of employees you have, and the coverage needed. Without taking these into account, below are the average costs of insurance for your business:
- General Liability insurance costs $500 in annual premiums.
- Workers Compensation costs $1200 in annual premiums.
- Professional Liability insurance costs $900 in annual premiums.