Energy and Construction Risks

  1. ENERGY INSURANCE

Insurance coverage for energy companies is designed to protect against a variety of exposures. Policies may cover machinery repair, income loss due to business interruption and off-shore physical damage.

Related products that may be important for energy companies include professional liability coverage. This protects companies against reputation loss that may arise from high-profile errors or accidents.

  1. CONSTRUCTION RISKS

Construction insurance protects construction companies, general contractors, and property owners from lawsuits, property loss, and other costly liabilities.

For many construction and contractor companies, a single insurance policy will not be enough. Instead, you’ll need a unique set of different insurance policies that each provide a specific type of protection for your business and construction projects.

Even when insurance is not required, it’s still important to carry coverage as it can help protect your business from common risks on the job, as well as help you gain client trust and win new contracts.

Types of construction insurance

  1. General liability insurance

Protects against common risks that construction businesses face. These risks include:

  1. Workers’ compensation insurance

Covers medical expenses and lost wages for your employees when they suffer a job-related injury or illness. It is a requirement for any construction company or contractor that has at least one employee to have workers’ compensation insurance in place.

  1. Commercial motor insurance

A motor accident can get extremely expensive, especially if another person is injured. A commercial motor insurance policy will cover medical bills, legal expenses, and property damage if one of your company vehicles are involved in an accident. This includes trucks and other vehicles that are commonly used during construction projects.

  1. Builder’s risk insurance

Builder’s risk insurance (also known as course of construction insurance) covers the costs of damage done to a building or structure while it’s still under construction. This damage could be caused by:

  • Fire
  • Weather
  • Vandalism

While other construction insurance policies protect equipment and people, most will not cover an unfinished structure. Builder’s risk policies fill that gap and ensure that your business is not stuck paying for damaged or ruined building materials before it’s even finished.

A builder’s risk insurance policy provides peace of mind to both you and your clients, making it a great addition to your construction and contractor insurance bundle.

  1. Contractor’s tools and equipment insurance

If your tools are lost, stolen, or damaged, it could cost your company thousands of dollars to repair or replace them. Fortunately, contractor’s tools and equipment insurance covers the cost of repair or replacement for qualifying equipment.

This policy typically covers a wide variety of tools and equipment that are less than five years old, such as hand tools (saws, wrenches, and hammers) and power tools (drills, nail guns, and circular saws). If you need to file a claim for lost, stolen, or damaged tools, your insurance provider will cover the cost to repair or replace them up to your policy limit.

You may also need inland marine insurance to insure more valuable property, such as excavators or forklifts.

Both policies only cover movable equipment that you bring with you to job sites, unlike commercial property insurance which protects a building you own and its contents.

  1. Professional liability

Also known as errors and omissions insurance (E&O), it protects your construction business from lawsuits over the quality of your work or the work of subcontractors you hired.

When you sign a contract with a client, you agree to provide a certain quality of work within a specific timeframe. If your company can’t meet the deadline or quality standards for the construction project, your client could file a lawsuit against you.

Professional liability insurance covers the cost of any lawsuits over the quality of your work, including lawyer fees, court fees, and settlements—no matter if you’re at fault or not.