Insurance for Small Construction Businesses

Small construction businesses require several of the same types of insurance coverage which larger businesses need. In addition to this, there are types of coverage available that are specific to the construction industry.

When deciding upon the right coverage for your business, make sure to call Gunn Mowery to discuss your options. Our representatives can help you decipher where to buy coverage and just how much you may need. We will be able to provide you with the best options.

Property Coverage
Property insurance may be needed to provide coverage for any real property owned by the company. This coverage may also be needed to cover any personal property that is used for the business. The largest amount of property loss may involve equipment and machinery that is taken to varying sites.

Standard property insurance doesn’t provide coverage for such items. It’s necessary to purchase floaters from contract insurers for such items. If you are unsure what types of floaters are available for your business, contact Gunn Mowery for more information. Our representatives will be able to determine the best choices in your situation.

Also keep in mind that a building under construction has a value that steadily increases while being built. In order to ensure that it is covered properly, a smart purchase would be a special policy. This policy is called Builders Risk Insurance. Speak with us to learn how these policies work and what they cover.

Liability Coverage
Every small business needs liability coverage. In today’s litigious world, claims small and large are affecting businesses more than ever. Since this is common, be prepared to face the situation by purchasing a rounded liability policy. Some small construction businesses may want to have their subcontractors purchase Owners and Contractors Protective Liability Coverage, which is also called OCP.

This type of insurance covers a business owner or business property owner from liability resulting from negligence of their independent contractors or subcontractors. The subcontractor or contractor is the actual purchaser of this policy.

Business Vehicle Coverage
Personal car insurance policies often cover some business use of a vehicle. However, if the vehicle is used primarily for business, it’s unlikely a personal auto policy will provide the same coverage.

The policy will never provide coverage for a vehicle that is owned by a business. The business’ vehicles must be insured with a policy that is specific for the business. If a personal vehicle is involved in an accident resulting in injuries to others while being used for business, the injured parties might sue the business itself and the business would have no coverage unless coverage is written correctly.

Workers Compensation
If you have employees, you will be required by law to obtain workers compensation to protect them from job related injuries and loss of wages thereof. As owners of the business, you will have the option of obtaining workers compensation on yourselves or waiving the right to obtain coverage.

But regardless of what you choose for yourself, you will need to obtain coverage for your employees. Always remember it’s best to contact an independent agency like Gunn Mowery to determine what amounts should be purchased for an individual business.

For more information on property, liability and business vehicle coverage, don’t hesitate to call Gunn Mowery at (800) 840-1243 or e-mail us at Become our Facebook fan at To become a subscriber to our newsletter, click here.

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