Risk Management for Construction Companies

Both large construction companies and small contracting businesses need to protect themselves against risk. Construction insurance coverage needs vary between companies and projects, but there are some key policy inclusions that every type of contractor should evaluate incorporating into their coverage.

General Liability

The core policy that all companies need is general liability. The amount of coverage necessary may depend on the size and scope of a company’s activities and the projects that it works on. Minimum coverage levels may be necessary to bid on certain projects.

Equipment Insurance

Many different types of contractors use valuable equipment in the course of their work. Damage or theft could severely interrupt a project, so companies need to insure themselves against this potentially significant loss.

Workers’ Compensation

Participation in a state-run workers’ compensation is likely to be mandatory for many companies. This coverage is for on-the-job injuries that employees sustain and can help pay for medical expenses. It may also cover lost wages. Failure to maintain adequate coverage could result in costly liability in addition to possible fines.


Some projects necessitate procuring a bond. Working with a provider that serves the construction industry may make getting a sizable bond more affordable.

Ultimately, owners and managers of contracting companies should review their current coverages and costs. Insurance is essential to safeguarding their work, assets, and employees.