How Risk Management & Liability Insurance Merge


When you think about risk management in the workplace, you often think about using proper fall equipment, study clothing, or quality hardhats. However, there’s another part of risk management that doesn’t directly involve changing things on the worksite. That factor is proper insurance.

What is Risk Management?

Getting started, let’s quickly go over what risk management is in the first place. As a contracting business, risk management is how you ensure that you can protect your business and keep your employees safe. If done right, you will avoid advertising injury, bodily injury, and major-loss lawsuits. While keeping the construction site safe is important, insurance can actually be a more important part of your overall risk management process.

What Types of Insurance Exist for Construction?

Knowing how important insurance is to your business, you might ask what insurance companies can provide you that will help. Insurance helps cover many things; however, there are multiple types of business insurance depending on your needs and budget.

General Contractor’s Insurance

What would happen if one of your employees wrecks a truck into a finished brick wall on-site? Without general liability coverage, you have to pay for everything yourself. However, if you have general contractors’ insurance, then your insurance will help you pay for the loss and repair.

However, this isn’t just a way for you to protect yourself. It’s usually a requirement by law. In most states, you are required to carry this if you want to take jobs over a certain amount or as a subcontractor or contractor.

Contractor’s Liability Insurance

Mistakes happen even to the best workers. The more workers you have on a project, the more likely a mistake is going to be made. This is where contractor’s professional liability insurance comes into play. Should one of your workers, or even a third-party that you hire, make a costly mistake, you will be covered.

This can be great for high-risk jobs that have many subcontractors, architects, engineers, and other workers. While not required by law, it can be required by the client as part of the bidding process.

Worker’s Compensation

As one of the most dangerous fields to work in, construction isn’t free from unexpected injury. When something happens on-site, you want to be able to take care of your workers. Power tools and heavy equipment can be a danger not just to limb but to life in general. This specific business insurance will ensure that your worker is covered for things like medical bills, lost wages, and other expenses related to an on-the-job injury.

Much like general liability insurance, this type of insurance is also required by law, depending on the state. As a rule of thumb, if you have more than five employees, then you’ll be required to have it. However, know where you live to know the specifics of what you need and when.

Choose Contractor’s Liability

Our name says it all. If you want an insurance quote for CPL insurance, we’re here for you. We’ll make sure you as the business owner stay protected and allow you to add all the additional insured parties you may need. If you need a certificate of insurance, have no fear, once you sign the contract, you’ll be able to download it to present right away.

Get a quote today!