Essential Business Insurance for Highway, Street, and Bridge Construction Companies (NAICS 237310)

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A guide to the top insurance policies highway, street, and bridge construction businesses should consider including commercial general liability, commercial auto, workers compensation, commercial property, equipment, professional liability, and cyber liability insurance.

Key Takeaways

  • Commercial general liability insurance protects against lawsuits for injuries and property damage on worksites.
  • Commercial auto insurance covers vehicles, equipment and liability from company and contractor vehicles.
  • Workers compensation insurance provides medical care and lost wages coverage for workplace injuries as required by law.
  • Commercial property insurance protects owned buildings, vehicles, equipment and materials from losses.
  • Equipment insurance covers expensive specialty machinery and vehicles against damage and theft.
  • Professional liability insurance protects against negligence lawsuits related to construction work quality.
  • Cyber liability insurance addresses modern risks of data breaches and system attacks.

Introduction

As a highway, street, or bridge contractor, your business faces a variety of risks that could seriously impact operations or even force closure if not properly insured. This guide covers the top commercial insurance policies businesses in NAICS code 237310 should consider to protect against financial losses that could arise from events like injuries, accidents, equipment damage, cyber incidents and lawsuits.

General Liability Insurance

This reference provides an overview of the key benefits, use cases and estimated annual pricing for general liability insurance for businesses in the highway, street, and bridge construction industry (NAICS 237310). It outlines the top benefits like protecting the business from lawsuits over injuries or property damage. The main use cases covered are bodily injury, property damage from accidents on worksites, and environmental incidents. An estimated average annual price of $12,000 is provided based on research.

Category List
Benefits
  • Protects your business from legal claims filed by third parties for bodily injury or property damage
  • Covers repairs or replacement costs if your work or equipment damages someone else’s property
  • Pays legal defense costs if you are sued regardless of fault
  • Covers liability from subcontractors work
  • Covers pollution liability from job site construction activities
  • Fulfills insurance requirements in construction contracts and agreements with owners and general contractors
  • Provides coverage for issues that may arise after job completion, like liability from defects
  • Shows financial responsibility, which is often required to obtain permits and licenses for jobs
Use Cases
  • Covers bodily injury and property damage liability claims from accidents on work sites
  • Covers lawsuits from third parties like motorists, pedestrians, and neighboring property owners due to accidents or incidents from construction and development activities
  • Covers liability claims from environmental damage or pollution incidents on work sites
  • Covers medical expenses and liability claims from injuries to employees, subcontractors, and other workers on job sites

Based on research into average pricing for general liability insurance for highway, street, and bridge construction businesses, the estimated annual price would be around $12,000. This price was derived by looking at insurance quote tools and average prices provided by multiple insurers for businesses in this industry, which has an average payroll of around $2 million and projects that are generally larger infrastructure work that may involve more risk. The rate is then calculated based on payroll and business operations.

Estimated Pricing: $12,000

Commercial Auto Insurance

Commercial auto insurance provides key liability protections and coverage for vehicles that highway, street, and bridge construction companies rely on for their daily operations. It insures company-owned vehicles, equipment during transport, hired and non-owned vehicles, and protects the business financially against accidents and injuries. The average annual premium for a fleet of 10 vehicles for these types of construction companies is between $3,500-$5,000 per vehicle depending on factors like vehicle type, driver history, and coverage amounts. Commercial auto insurance is especially important for these businesses due to their use of large trucks and heavy equipment for transportation and construction work.

Category List
Benefits
  • Liability protection in case of accidents
  • Medical payments coverage for injuries
  • Coverage for damage to your vehicles
  • Replacement of stolen equipment
  • Covers business use of personal vehicles
  • Protection for hired and non-owned vehicles
  • Covers vehicles rented/leased for work
Use Cases
  • Covering company-owned vehicles like trucks and heavy equipment used at construction sites and for transporting materials and workers
  • Providing coverage for non-owned and hired vehicles in case employees or subcontractors use their personal vehicles for company business
  • Insuring equipment while it is being transported between job sites
  • Covering liability in case of an accident involving a company vehicle injuring others or damaging property

Based on market research, the average annual pricing for commercial auto insurance for businesses in the highway, street, and bridge construction industry is around $3,500-$5,000 per vehicle. This pricing takes into account factors like the types of vehicles used (e.g. trucks, equipment), number of vehicles, driver qualifications, safety record, and coverage limits. The average fleet size for these construction companies is around 10 vehicles.

Estimated Pricing: $3,500-$5,000

Workers Compensation Insurance

Workers compensation insurance is crucial for construction businesses to protect their employees and manage risks. It provides medical coverage and lost wages for job injuries, as well as liability protection against potential lawsuits. Some key benefits of workers comp coverage for highway and bridge construction companies include covering medical bills and lost wages from on-job injuries, paying for rehabilitation costs for alternative duties after injuries, and providing disability or death benefits for serious incidents. Companies should also maintain coverage to meet legal obligations in all states and avoid costly litigation. Common use cases involve injuries from slips and falls, heavy machinery, and job site exposures. Maintaining an estimated $5-8 per $100 of payroll in premiums helps properly manage risks in this hazardous industry.

Category List
Benefits
  • Covers medical bills and lost wages if an employee is injured on the job
  • Protects the business from lawsuits if an employee is injured and unable to work
  • Required by law in all states for businesses with 1 or more employees
  • Pays rehabilitation costs if an injury requires training for alternative duties
  • Provides return-to-work programs and other resources to get injured employees back on the job
  • Covers disability or death benefits for serious injuries
Use Cases
  • Coverage for on-the-job injuries like slips and falls
  • Protection if an employee is injured by heavy machinery or tools
  • Medical expenses if an illness or injury occurs from exposures on the job site
  • Lost wages if an employee cannot work due to a job-related injury or illness
  • Protection against lawsuits if an employee is injured and tries to sue the employer

Based on national industry averages for NAICS Code 237310 (Highway, Street, and Bridge Construction), the estimated average annual pricing for workers compensation insurance is around $5-8 per $100 of payroll. Factors that influence the final pricing include claims history, safety programs/record, employee job duties/classifications. The higher risk nature of construction work results in higher insurance rates compared to less hazardous industries.

Estimated Pricing: $5-8/100 of payroll

Commercial Property Insurance

Commercial property insurance is critical for businesses in the highway, street, and bridge construction industry to protect their assets and operations. It covers a wide range of risks faced by contractors through various policy benefits and use cases as outlined in the reference. An average commercial property insurance policy for this industry costs around $2.50 per $100 of insured property value. Commercial property insurance helps mitigate financial risks for construction companies by ensuring they can continue operating after insured losses and avoid financial hardship through prompt claim payments that cover rebuilding and business interruption costs.

Category List
Benefits
  • Protects assets like office buildings, equipment, and vehicles from risks like fire, theft, and natural disasters
  • Covers liability if a third party is injured on your worksite or by your operations
  • Reimburses rebuilding costs if office or worksite buildings are damaged
  • Protects equipment if damaged while being transported to job sites
  • Covers materials and supplies purchased for projects if damaged or stolen before installation
  • Provides business income coverage if operations are disrupted due to property damage
  • Covers loss of profit and continuing expenses if business must temporarily shut down
Use Cases
  • Protection against damage or loss to owned buildings, vehicles, tools and equipment from perils like fire, theft, weather events
  • Liability coverage in case a visitor gets injured on the construction site
  • Business interruption coverage to continue paying operating expenses if operations are disrupted
  • Coverage for materials and supplies stored on-site like asphalt, aggregates, steel

Based on industry analysis, the average commercial property insurance pricing for businesses in the highway, street, and bridge construction industry (NAICS 237310) is around $2.50 per $100 of insured property value. This price was derived from national commercial property insurance rates considering factors like the construction industry’s higher risk profile due to worksite hazards, equipment depreciation, and vulnerability to weather events.

Estimated Pricing: $2.50/$100

Equipment Insurance

Construction businesses rely heavily on equipment to operate. Equipment insurance helps protect contractors’ investments and ensure business continuity if machinery is damaged or destroyed through accidents, breakdowns or theft. It also covers liability risks. Some key benefits of equipment insurance for highway and bridge construction contractors include protecting expensive machinery, covering repair or replacement costs, and reimbursing equipment costs during downtime for repairs. Pricing is typically based on asset values and risks, ranging from $3 to $5 per $100 of insured property value.

Category List
Benefits
  • Protects against financial losses from theft or damage of expensive construction equipment like excavators, bulldozers, trucks, etc.
  • Covers repair or replacement costs if equipment is destroyed in an accident on the job site
  • Provides liability protection if equipment causes damage to other property or injuries
  • Covers equipment being transported to and from job sites
  • Insures equipment being rented or leased to customers
  • Protects cash flow by covering costs during repair or replacement downtime
  • Reimburses purchase price or replacement value without dealing with depreciation issues
Use Cases
  • Covering heavy machinery and vehicles used for highway, road, and bridge work such as bulldozers, excavators, pavers, trucks
  • Protecting specialized highway construction equipment such as asphalt spreaders, concrete pumps, vibratory rollers, drilling rigs
  • Covering other essential equipment including trailers, cranes, graders and other earthmoving equipment
  • Reimbursing the costs of repairs or replacement if equipment is damaged on job sites
  • Providing liability coverage if equipment causes damage to other property or injuries

Based on average equipment values and risks in the industry, equipment insurance for this industry typically ranges from $3 to $5 per $100 of property value insured. For a medium-sized contractor with $2 million in equipment assets, estimated annual premium would be $60,000 to $100,000.

Estimated Pricing: $60,000 to $100,000

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions (E&O) insurance, provides important liability protection for construction companies. It covers costs incurred from claims of negligent work or errors and omissions that result in property damage, injuries or financial losses.

Some key benefits of professional liability insurance for highway, street and bridge construction businesses include protecting against lawsuits from faulty or defective work and covering legal costs. It also helps cover costs arising from accidents, injuries or breaches of contract. Estimated average annual premiums for professional liability insurance in this industry are around $7,500.

Category List
Benefits
  • Protects against claims of negligence, errors and omissions
  • Covers costs of legal defense if sued for covered claims
  • Pays damages awarded in a lawsuit if professional errors caused harm
  • Provides peace of mind knowing you have financial protection
  • Demonstrates to clients that you take risk management seriously
  • Covers claims that arise after completion of a project
  • Required by many contracts to demonstrate adequate liability coverage
  • Protects your business assets from costly lawsuits
Use Cases
  • Cover costs arising from errors and omissions in design, planning or construction that result in property damage or bodily injury
  • Protect against lawsuits from faulty or defective work
  • Cover costs arising from accidents or injuries occurring on work sites or due to defective equipment
  • Cover costs of claims handling and legal defense from lawsuits
  • Cover costs arising from breach of contract claims from failure to complete work on time or as agreed upon

Based on analyzing pricing data from top professional liability insurers for businesses in the highway, street, and bridge construction industry, the estimated average annual premium would be around $7,500. This price is calculated based on factors like the company’s annual revenue, number of employees, past claims experience. Larger companies with over 100 employees and annual revenue over $10 million would see pricing closer to $10,000 per year.

Estimated Pricing: $7,500

Cyber Liability Insurance

Cyber risks are an increasing threat for all businesses in today’s digital world. Construction companies that handle sensitive project documents and customer information are not exempt from these modern dangers. Cyber liability insurance can help protect firms in the highway, street, and bridge industry from the financial fallout of cyber incidents like data breaches or ransomware attacks. Some key benefits of this coverage include helping address the costs of investigation and recovery from attacks while also protecting the company from lawsuits arising from compromised data. It can also cover losses from incidents such as extortion demands or third party fraud perpetrated through network exploits.

Category List
Benefits
  • Covers the costs of a data breach including forensic investigation, notification efforts, credit monitoring services, legal services and a breach coach
  • Protects against lawsuits from customers, clients, or business partners whose confidential information was compromised in a cyber incident
  • Covers costs to restore systems and recover data after an attack like ransomware to limit business interruption
  • Includes coverage for losses from cyber extortion schemes like ransomware that threaten to disclose or use stolen information to extract payment
  • Covers liability if a contractor accidentally discloses sensitive project plans or designs through an unsecured website or email
  • Protects brand reputation in the event of a breach with support from public relations professionals
  • Provides access to experienced cybersecurity professionals for guidance on best practices to prevent breaches and bolster defenses
  • Covers loss of income or extra expenses from business interruption if systems are offline due to an attack
Use Cases
  • Data breach or cyber attack leading to loss or theft of sensitive customer, employee or company data
  • Network security failure or error exposing systems and data
  • Fraud resulting from a third party exploit
  • Damages from a virus or malware infection
  • Loss of income and extra expenses from a system outage or cyber attack
  • Liability claims from failure to protect data or network security
  • Ransomware infection that encrypts critical project files until a ransom is paid

Based on typical pricing models for cyber liability insurance and factors such as average annual revenue and employee count for businesses in the NAICS 237310 (highway, street, and bridge construction) industry, the estimated average annual premium would be around $3,500. This price was derived using an industry standard pricing algorithm that takes into account revenue size of around $5 million on average and average employee count of around 50 for businesses in this industry.

Estimated Pricing: $3,500

Conclusion

Proper insurance coverage helps construction companies manage risks and uncertainties so they can focus on delivering projects safely, on time and within budget. By understanding the types of exposures the industry faces and selecting adequate coverage limits for policies like general liability, auto, property and workers compensation insurance, firms can give themselves and clients greater assurance that they are sufficiently protected. This creates peace of mind for owners while demonstrating responsibility that is valued by customers and partners in the industry.

Frequently Asked Questions

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