Business insurance is intended to safeguard the financial assets of a business owner and is a necessary investment for a deck construction company.
This article will discuss the primary insurance coverage for deck construction enterprises, general liability insurance, as well as additional products that are appropriate for this industry.
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Deck Builders Need General Liability Insurance
Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.
General liability insurance covers the following risks:
Physical harm
Damage to property
Medical expenses
Legal defence and decision
Personal and commercial harm
While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.
GENERAL LIABILITY INSURANCE MAY COVER COMMON SITUATIONS FOR A DECK BUILDING BUSINESS
Example 1: After an employee inadvertently inserts the incorrect sort of wood in a client’s deck, the customer sues for general annoyance and wasted time. General liability insurance would cover the expenses of defending or settling the litigation.
Example 2: If a client’s deck falls after a severe storm, they will sue you for compensation blaming bad craftsmanship. Your legal expenditures would be covered by general liability insurance.
Example 3: An employee inadvertently destroys the side of a client’s home during construction. General liability insurance would cover the cost of repairing the client’s property.
Example 4: A huge wooden beam is left by an employee on the side of a customer’s driveway, causing the client to trip as they depart their car. The wounded client’s medical expenditures would be covered by general liability insurance.
Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.
General Liability Insurance Cost
Deck construction companies in the United States typically pay between $500 and $1,500 per year for $1 million in general liability insurance.
The cost of your coverage will be determined by a number of variables. Among them are your:
Location
Deductible
Employees’ number
Per-occurrence restriction
The overall aggregate limit
You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.
Deck Building Companies Require Additional Coverage
While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all deck construction companies should have are listed below.
Insurance for Commercial Property
Commercial property insurance protects your business-related property against a number of calamities such as theft, vandalism, and harsh weather if you own the building(s) in which you operate. It includes the physical construction of your office, warehouse, or workshop, as well as the repair or replacement of any equipment or items kept there.
Insurance for Workers’ Compensation
Workers’ compensation insurance is required in most states for both part-time and full-time employees. This coverage covers your workers if they are hurt at work or get sick as a result of a workplace accident. It covers not just an employee’s medical expenditures and missed pay if they need time off to recuperate, but also any disability or death benefits resulting from a work-related accident.
Insurance for Professional Liability
This insurance protects the professional advice you provide to your customers. If you tell a customer that a certain construction approach would not harm their lawn and it does, for example, professional liability insurance will pay your legal fees if they file a case.
Insurance for Product Liability
Product liability insurance, which covers faulty or hazardous items, would pay your legal fees as well as any court-awarded damages resulting from a lawsuit. Because it all adds up to the final structure, this coverage extends to all labour throughout the deck building process.
Coverage Options for Some Deck Building Companies
In addition to the insurance listed above, your deck construction firm may need other forms of coverage based on particular elements of your operations. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.
Umbrella Insurance for Businesses
While most claims are covered by your general liability insurance policy, certain incidents or lawsuits may be so severe that they threaten to deplete the limits of your main coverage. Commercial umbrella insurance protects you from having to pay for legal expenses and awarded damages that exceed the limits of your main policy out of pocket. This insurance will also cover the price of rebuilding your company’s reputation.
Additional Security Measures for Your Company
Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.
With this in mind, here are a few steps you can take to better secure your company:
Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)
To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)
Keep your company licences up to date.
Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.
If your company is an LLC, you should check into LLC insurance.