What Types of Insurance Do Construction Businesses Need?

Construction businesses in Texas need construction insurance to protect against financial losses from accidents, property damage or lawsuits that can occur on job sites. Having it helps maintain compliance with state regulations and demonstrates risk management to clients.

Essential Insurance for Texas Construction Businesses

Construction insurance policies may comprise multiple types of insurance that help address various risks. Here are some primary inclusions:

• General liability insurance is a foundational policy for construction companies. It can help financially safeguard your business if you are held responsible for third-party injuries, property damage or legal costs resulting from your operations. For example, if a client or visitor is injured on a job site, this coverage may help pay medical expenses and legal fees.
• Workers’ compensation insurance can help pay for medical bills and lost wages for employees who are injured or become ill due to work-related activities. Having this policy helps demonstrate your commitment to your employees’ well-being.
• Commercial auto insurance may cover business vehicles in case of accidents, theft or damage. This coverage can also extend to liability if your drivers are involved in an accident while on the job.
• Builder’s risk insurance may cover buildings and materials during construction. It can help reduce financial losses from fire, theft, vandalism or severe weather events while a project is underway.

Additional Coverages to Consider

Depending on your operations, you may also benefit from:

• Equipment and tool insurance
• Professional liability insurance
• Umbrella liability insurance

We’re Here to Help

Our team at Verax Insurance Services can help Texas construction companies assess risks and recommend customized insurance solutions. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.