Why Your New Construction Biz Needs to Invest in Insurance

This is a great time to start a construction business. However, starting a construction business does not come without risk. There are many risks that a construction company must try to mitigate from injury to property on the job site to personal injury of employees. Having construction business insurance is a must. Learn more about why you should invest in insurance for your construction business.

The Risks

There are likely risks that you are not aware of when it comes to managing your construction business. For example, in the construction field, there is something called an implied warranty. That implied warranty covers safety and quality. If the work fails to meet the standard, you can be held liable for any damage that occurs. That “damage” includes property damage and any injuries caused on the job site to the owners of the property.

Protecting yourself and your business from having to pay out in liable situations is where insurance comes in. Unfortunately, the odds that someone that works for you will be hurt on the job site are stacked against you. According to OSHA, injuries in the construction industry happen more frequently than in all industries combined. Falls, injuries from tools, injuries from faulty equipment, and more are all frequent events on job sites.

One of the most common and preventable injuries is injuries from machinery. Operator error is the leading cause of injuries on construction job sites. Operator error is often the cause of injuries, even in less risky occupations in factories and warehouses where 10% of injuries are chalked up to forklift operation.

You can reduce risk through training programs, but you still need insurance to protect your workers should they become injured. Of course, insurance also protects you from being personally liable for a worker’s injury.


Risks are not limited to injuries and property damage. One of the risks of owning a construction business is misunderstandings between parties. About 41% of new buyers end up not happy with their purchase, about 30% of buyers have neutral feelings about their purchase but still come to regret their purchase decision. The same is true of construction work. Sometimes, parties involved in the work cannot see eye to eye, and you wind up liable for costs. Insurance can help to offset some of the costs of legal problems relative to the work.

Insurance Is Often a Requirement

If you have any intention of bidding for government or municipal projects, you have to have insurance in most cases. Big contracts always require that you have insurance. In many cases, even the smaller projects want you to have insurance. One of the tips that many homeowners receive when they are considering a construction contractor is to ensure that the business has insurance.

Without insurance, you are limiting yourself. You will be limited to the number of jobs you can bid on, and you will be limited to the number of people that are willing to hire you. Having insurance validates your business. Being able to provide potential clients with your insurance information can tip the scales in your favor.

Protect Yourself

One of the many benefits of having a good insurance plan for your construction business is having peace of mind. When you know that you are protected against liability, you are free to focus on building and growing your business. You can worry less and focus more on how to make your business successful. Comprehensive coverage mitigates a lot of the financial risks you are facing. You will sleep better at night with the right insurance plan.

Business insurance for the construction industry is a must-have. Insurance should be a part of your plan. Consider an investment in insurance as an investment in protection for your construction biz. You can better protect your finances, your business finances, and ensure that your employees are protected. Learn more about this type of insurance and how it can help you to grow your new construction biz.