Insurance for Concrete Contractors

Insurance For Concrete Contractors

When you are asking, “What do I need to start a concrete business?”, one of the most important things on the list will be insurance.

In this post, we are going to explain what you need to know about applying for insurance for your concrete contractor business.

We will talk about why insurance is important for concrete contractors, types of insurance to get, the cost for concrete contractor insurance, and more. But first, let’s talk about who needs this type of insurance.

Who Needs Concrete Contractor Insurance?

Anyone who works with concrete as a contractor needs concrete contractor insurance. This is true whether you are pouring concrete foundations, building structures out of concrete, paving sidewalks, constructing pools, or doing any other type of concrete work.

Concrete Contractor Insurance Requirements

Do you need insurance to legally operate your concrete contractor business? Maybe.

Most states do not mandate that general contractors buy insurance. But some states might require some concrete professionals to get insured.

USA Business Insurance explains, “General liability insurance is a requirement for concrete contractors in certain areas. You can check with your state or local municipality to see if this type of insurance is a requirement where you operate. Also, keep in mind that you may need general liability insurance to sign a lease on rented commercial office spaces and warehouses. Some clients also prefer to work with concrete contractors who hold this type of insurance, so it could help you win more business, even if it’s not a legal requirement.”

One more thing to keep in mind while we are talking about legal requirements is this: if you have employees, you are required by law to purchase workers’ compensations, no exceptions. This is true in every state.

Do You Need Specialized Concrete Business Insurance Coverage?

As we just explained, you might need concrete contractor insurance to satisfy legal requirements, to appeal to clients and win contracts, and as a condition to sign leases. But you need it for other reasons as well.

  • Offset medical or legal costs. There is a lot that can go wrong when you are working with concrete, and mistakes or accidents involving concrete can be very expensive. Concrete contractor insurance protects you financially in case something does go wrong on the job.
  • Protect your business property. You can purchase insurance that can protect your tools, equipment, materials and vehicle against damage, vandalism or theft.
  • Keep your business running smoothly. With insurance protecting your business, there will be fewer interruptions and delays. For example, if your valuable equipment is stolen, you can repair or replace it quickly with the insurance covering it. Or if a client sues you, it is less likely your business will grind to a halt since your coverage may pay out.
  • Give peace of mind to yourself and your clients. Just knowing you are bonded and insured will make clients feel safer trusting you with their business. You also will feel less stressed and anxious knowing that your coverage is there if you need it.

Types of Concrete Contractor Insurance

concrete business insurance quote

The exact policies you need for your concrete business depend on the details of your business as well as your budget.

Someone just starting out on a low budget may choose to just purchase the bare minimum, which is general liability insurance and (if you have employees) workers’ comp.

But as your budget grows, you will want to add other types of insurance so that you are providing your business with more thorough protection.

Here are some of the most common types of insurance for concrete contractors:

  • General liability: If another person’s property is damaged, then general liability coverage can pay out. It also pays out in situations where you injure another person. This is considered to be the most basic and essential type of insurance policy in most lines of work, and concrete contractor is no exception. 
  • Contractor’s errors and omissions: This type of insurance coverage is also called “professional liability insurance.” That name makes it easy to mix up with general liability insurance. Errors and omissions, on the other hand, explains exactly what this type of insurance covers. If a client sues you for professional negligence, then errors and omissions coverage may pay out.
  • Commercial auto: When you are driving to and from work in your commercial vehicle, you can get into an accident. Your personal auto policy is for your personal vehicles, and your commercial auto policy is for your commercial vehicle. It also can cover damages to your work vehicle while it is parked.
  • Workers’ comp: When other people are working for you, there is always the chance they will get injured or sick on the job. Workers’ compensation can cover lost wages and medical care for your employees. Remember, you are legally required to get this type of insurance if you have employees.
  • Tools and equipment: As the name suggests, you get this type of coverage to protect your tools and equipment that you use for work. Since you literally rely on those tools and equipment to make a living as a concrete contractor, it makes sense to provide them with the best protection you can. After all, if someone steals your tools or damages your equipment, work might halt until you can get it replaced. That is a lot easier to do if you are covered.
  • Commercial property: General liability insurance protects other peoples’ property, but not your own commercial property. If you want to protect your business property, then you need to get this additional policy type.
  • Surety bond: Sometimes you may start a job that for whatever reason, you are unable to finish (perhaps because weather or fire destroyed what you were working on). A surety bond can provide the funds for swift reimbursement to the client. You can then pay it back later on a longer time schedule. You sometimes need to buy surety bonds to even be considered for certain projects. Find out more about bonding for contractors.

How Much Does Concrete Contractor Insurance Cost?

According to Contractors Liability, the cost for concrete contractor’s general liability insurance ranges from around $2,700 up to around $3,200.

Here are some of the factors that can affect the cost of insurance for concrete contractors.

  • The type of work you perform: A concrete contractor who mainly paves sidewalks might have different costs than a contractor who builds concrete structures. The nature of your work impacts your risks, and therefore the costs to insure your business.
  • Types of coverage: You can save money by just purchasing the most basic types of insurance (general liability insurance and workers’ comp). The more types of coverages you add on, the more your insurance will cost overall (you should strongly consider purchasing these additional types of coverages if you can afford them).
  • Deductible: If you are okay with a higher deductible, then the premiums for your insurance can decrease. That means your out-of-pocket costs will be higher, however, if you have to make a claim.
  • Coverage amounts: The higher the dollar amount you choose as the maximum your policy will pay out, the more expensive it will be.
  • Company size: Larger concrete companies with more elaborate operations will cost more to insure than smaller concrete companies.
  • Payroll: The higher your payroll, the more workers’ compensation will cost.
  • Area of operation: Operating within a small geographical area will often mean paying less on insurance. A larger area of operation or an area which is considered high risk will result in a higher cost for insurance.
  • Claims history: Contractors who have a long history of claims may be operating unsafely. Insurance companies are aware of this, and do not want to expose themselves to that heightened risk of future claims without charging more money. A clean claims history, on the other hand, may help you qualify for lower insurance costs.
  • Discounts: Insurance companies for concrete contractors sometimes make discounts available for certain things. Always ask any carrier you are thinking of choosing what discounts they can offer you.
  • Carrier: Due to differences in underwriting guidelines, different insurance carriers may quote you different prices for concrete contractor insurance. Shopping around for quotes is the only way to know which company is offering you the best deal.

Where to Get Concrete Contractor Insurance

Here are some of our recommended options for where to purchase concrete contractor insurance.

1. NEXT Insurance

This company specializes in insurance policies for small business, including concrete contractors. Types of policies they offer include:

  • General liability
  • Contractor’s errors and omissions
  • Commercial auto
  • Workers’ comp
  • Tools and equipment
  • Commercial property

Not only do you get to work with a company that focuses on the needs of small business owners like you with NEXT, but you also can save up to 25% on your policies. Additionally, this company is known for its rapid claims process. There are many scenarios where you can find out the company’s decision within 48 hours of filing your claim.

next insurance

2. USA Business Insurance

Another fantastic option for contractor insurance for concrete professionals is USA Business Insurance. Through this company, you can get the following types of insurance policies:

  • General liability
  • Commercial auto
  • Workers’ comp
  • Tools
  • Surety bond
  • Business personal property
  • Excess liability

USA Business Insurance has a huge network comprising more than 240 carriers, so you should find it easy to customize your policies and receive competitive quotes.

3. Contractor’s Liability

One more option worth thinking about is going through Contractor’s Liability for concrete contractor insurance. You can apply for these types of policies:

  • General liability
  • Commercial auto
  • Workers’ comp
  • Commercial property
  • Surety bonds
  • Employee dishonesty bonds

Contractor’s Liability is licensed in every state, and can help you tailor your concrete contractor insurance policies to your needs with quotes from multiple carriers. If you want to get things moving quickly, this company is great to work with since they can get you your certificate in 4 hours or less.

Get Insurance for Concrete Contractors Now

As a concrete contractor, you need a customized set of insurance policies that will provide you with the coverages you need to protect your business.

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