Foundation Contractor Insurance

What You Need to Know About Foundation Contractor Insurance

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Foundation Contractor Insurance

Foundation contractors face a wide range of business risks, from employee injuries to causing property damage or injuries to third parties. What’s more, you risk loss to your property and equipment while your employees are out on the job.

Foundation contractor insurance is critical for protecting your business from financial losses. An independent insurance agent can help you assess the risks involved in your business, and help you get the business insurance that’s right for you and your budget.

Why Do You Need Foundation Contractor Insurance?

Here are some of the risks that you face as a foundation contractor.

  • Stolen tools and equipment
  • Liability claims arising from injuries or property damage that occur at a job site
  • Collapses involving foundations that you’re working on, causing injuries or property damage
  • Fire, severe weather, or smoke that damages your office, warehouse, or storefront
  • Causing damage to a client’s home or personal property
  • Causing damage to another contractor’s work
  • Worker injuries or illnesses

For these and many other reasons, you need foundation contractor insurance to protect your livelihood at times when things go wrong.


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What Does Foundation Contractor Liability Insurance Cover?

Several different types of business insurance policies are necessary to help cover your risks.

  • Commercial general liability (CGL) insurance: Protects you from the costs of liability claims and lawsuits. It can help you pay for property damage, medical bills, and attorney fees, court costs, settlements, and judgments. Most states require contractors to have a valid contractors liability insurance policy in place to get licensed, to bid on jobs, and to conduct any kind of construction work.
  • Commercial auto insurance: Covers your vehicles and drivers in the event of an accident or other types of vehicle damage.
  • Commercial umbrella insurance: Can cover you for claims that exceed the limits of your other liability policies (general liability and commercial auto).

You might also want to consider professional liability insurance. This coverage may be appropriate for your business if you consult with customers and recommend specific products or treatments. It's designed to protect you from the high cost of legal claims if advice or recommendations you provide result in loss to your customer.

What Does Property Insurance Cover?

Commercial property insurance covers your office space, shop, warehouse, or other buildings and their contents from losses due to fire, theft, vandalism, wind, hail, and other losses that can occur.

You’ll also need the following to help you pay expenses if you have a temporary disruption following a covered event.

  • Business interruption insurance: Reimburses you for lost income and helps pay for certain ongoing expenses if you are temporarily unable to operate due to a covered loss (fire, weather, vandalism, etc.).
  • Extra expense coverage: Pays for non-ordinary expenses (e.g., buying or leasing equipment for a temporary site, paying overtime, hiring temp workers) that are above and beyond your normal operating costs if you can’t operate out of your usual location or if your equipment is damaged from a covered event.

You can learn more about covering your commercial property by speaking with a local independent insurance agent.

How Can You Cover Your Tools and Equipment?

Foundation contractors likely need to cover tools and equipment when they are away from the primary business premises. You may need the following to supplement your commercial property insurance.

  • Inland marine insurance: Protects your equipment, tools, portable computer equipment, and other supplies from theft, loss, or damage while they are in transit to and from worksites, such as in your work trucks. 
  • An installation floater: Protects materials left at a job site to be installed but that are damaged before you can do it. If, for example, you drop off materials for a foundation but find them vandalized and broken the next morning, an installation floater will likely cover your losses.
  • A tools and equipment floater: This can normally be added to your property damage coverage. It covers any leased or owned specialized tools and equipment for your foundation business while they’re stored on the construction site. It can offer coverage for tools like hand tools, power tools, contractors gear (hard hats, goggles, etc.), shovels, and wheelbarrows. It can also cover equipment like compressors, generators, excavators, backhoes, and others that you use in your operations.

If you need any other coverage for your valuable tools and equipment, an experienced independent insurance agent will be able to help you find the right solutions. 


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What Does Workers’ Compensation Insurance Cover?

Keeping your employees safe form workplace injuries and illnesses should be a top priority. Your employees are exposed to a wide variety of injuries, including falls, heavy lifting injuries, crushed fingers and limbs, repetitive motion injuries, and more. These injuries can be debilitating, costly, and lead to decreased productivity and time away from work.

Workers’ compensation insurance is required for most employers. It provides coverage for medical bills and lost wages when accidents or illnesses happen in the workplace.

Workers’ compensation insurance provides benefits to injured workers regardless of who is at fault for an injury.

Do Foundation Contractors Need Construction Bonds?

Construction bonds, or surety bonds, are essential protections for contractors and those with whom they do business. Bonds are essential to finding, securing, and performing work on all kinds of construction projects, and are often required by the project owner in order for your bid to be accepted. They serve as a guarantee for various aspects of the bidding process and construction contract.

There are several different types of construction bonds or contractor bonds, and each guarantees a different aspect of the bidding process and the contract.

How Much Does Foundation Contractor Insurance Cost?

Insurance for foundation contractors can range from several hundreds of dollars per month to thousands. It depends on the size of your business, the number of employees you have, and the value of your commercial property.

Other factors come into play as well. The types and amounts of coverage you need to adequately cover your risks will dictate the cost of your foundation contractor insurance.


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Benefits of an Independent Agent

An independent insurance agent who has experience working with foundation contractors and other similar businesses can help you decide the types and amounts of coverage that you need for your business. The choices you make will determine your cost of coverage.

Independent agents can work with numerous, reputable insurance companies who specialize in your type of business. Together you can review a variety of proposals and choose the best mix of coverage that meets your needs and budget.

What’s more, your agent will be there for you when claim time comes. They know the ins and outs of the process and will make sure your claim is handled appropriately.

Find and Compare Quotes for Foundation Contractor Insurance

Instead of getting an online quote, find an independent insurance agent now, and get one-on-one consultation and affordable options for the best coverage for your unique needs.

Your agent will work with you free of charge to get quotes from multiple insurance companies so you can make the best choice.

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