Essential Business Insurance Policies for Power Line and Communication Tower Contractors (NAICS Code 237130)

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Learn about the top insurance policies needed to protect power line and communication tower contractors including general liability, workers' comp, commercial auto, property, and more.

Key Takeaways

  • General liability insurance protects against claims of property damage or bodily injury to third parties.
  • Workers’ compensation insurance covers medical expenses and lost wages for employees injured on the job.
  • Commercial auto insurance protects company vehicles and provides liability coverage for accidents.
  • Commercial property insurance covers costs to repair or rebuild properties after insured losses like fire or storms.
  • Commercial umbrella insurance provides additional liability coverage above primary policies’ limits.
  • Commercial inland marine insurance covers specialized equipment, tools, and materials used on job sites.

Introduction

As a contractor in the power line and communication tower construction industry, it is important to have the proper insurance policies in place to protect your business from a variety of risks. This article will review the top business insurance policies necessary for contractors in this field.

General Liability Insurance

General liability insurance provides important protection for businesses in the power and communication line construction industry. It helps cover costs from a variety of risks these companies may face while working with electricity, hazardous materials, and heavy equipment.
Key benefits of general liability insurance for this industry include protecting the business from third-party claims of property damage or bodily injury, covering legal costs if sued, and providing pollution liability coverage for accidental releases. Common use cases where coverage applies involve bodily injury or property damage claims from job site accidents, liability for faulty workmanship, and lawsuits from third parties injured during operations. Estimated pricing for companies in this industry is around $2.50-$3.50 per $100 of payroll.

Category List
Benefits
  • Protects your business from third-party claims if your operations result in property damage or bodily injury
  • Covers your legal costs if you are sued by a third party
  • Provides coverage if an employee is injured on one of your job sites
  • Covers costs associated with product recalls if any of your work results in faulty installations
  • Covers liability claims even if a subcontractor caused the damage or injury while working on your job site
  • Protects your business’s reputation in the event of an accident
  • Covers liability arising from contractual agreements with clients or suppliers
  • Covers pollution liability from accidental releases during your operations
Use Cases
  • Bodily injury or property damage claims from accidents on job sites or during construction projects
  • Liability claims from faulty workmanship, design flaws, or product failure
  • Lawsuits brought by third parties for injuries or damages that occur during operations
  • Claims related to pollution incidents from waste, emissions, runoff, or other environmental hazards
  • Losses from non-owned vehicles used for business

Based on industry analysis and average claims data, the estimated annual pricing for general liability insurance for businesses in the power and communication line and related structures construction industry (NAICS 237130) is around $2.50-$3.50 per $100 of payroll. This price range was derived from national industry averages, considering the risks associated with this type of construction work, which can include worksites at heights and around energized utility lines.

Estimated Pricing: $2.50-$3.50/100 of payroll

Workers’ Compensation Insurance

Workers’ compensation insurance provides essential protections and peace of mind for companies in the high-risk power and communication line construction industry. It ensures employees receive medical care and lost wages should injuries occur on the job, while also protecting employers from liability risks. Benefits of coverage include covering medical expenses, lost wages and disability from on-the-job injuries as well as an estimated average cost of $2.50 per $100 of payroll. Common risks in this industry that could result in claims include falls, electrocutions and injuries from heavy equipment. Workers’ compensation promotes safer work sites and higher employee morale by financially incentivizing injury prevention.

Category List
Benefits
  • Covers medical expenses and lost wages for employees injured on the job
  • Protects the business from liability lawsuits filed by injured employees
  • Required by law in most states
  • Retains valued employees who are injured by ensuring wage replacement and medical benefits
  • Reduces the likelihood of costly legal battles over injury claims
  • Improves employee morale and retention through peace of mind about injury protection
  • Promotes a safer work environment through financial incentives for injury prevention
Use Cases
  • Coverage for on-the-job injuries from accidents like falls from heights, electrocutions, being hit by falling objects
  • Medical expenses like hospitalization costs, surgery fees, prescription drugs for injuries sustained on the job
  • Lost wages if an employee is unable to work due to a job-related injury or illness
  • Disability and death benefits if an employee is permanently disabled or killed from a work accident

Based on national averages, the estimated average pricing for workers’ compensation insurance for businesses in the power and communication line and related structures construction industry with NAICS code 237130 is around $2.50 per $100 of payroll. This rate is derived from considering industry risk factors like working at heights and with heavy equipment as well as average claim costs for this industry.

Estimated Pricing: $2.50 per $100 of payroll

Commercial Auto Insurance

This reference provides information on the top benefits, use cases, and estimated pricing of commercial auto insurance for businesses in the power and communication line and related structures construction (NAICS Code: 237130) industry. It highlights how this type of insurance financially protects these businesses from liability risks and losses involving their fleet vehicles and heavy equipment used for construction work. Commercial auto insurance plays a crucial role in managing risk for businesses in this industry by providing protection from the exposures presented by their reliance on vehicles to conduct operations.

Category List
Benefits
  • Liability protection in case of accidents
  • Physical damage coverage for company vehicles
  • Medical payments coverage for employees injured in a covered auto accident
  • Hired and non-owned auto liability coverage
  • Underinsured/uninsured motorist coverage
  • Emergency roadside assistance coverage
Use Cases
  • Covering fleet vehicles such as trucks and vans used for transportation of workers and equipment to job sites
  • Covering specialty vehicles such as bucket trucks, cranes and other heavy equipment used in construction work
  • Providing liability coverage in case of accidents involving company vehicles

Based on industry data and averages, the estimated pricing for commercial auto insurance for businesses in the power and communication line and related structures construction (NAICS Code: 237130) industry is around $1,500-$2,000 per vehicle annually. This takes into account the higher risk nature of this industry which involves driving large construction vehicles and transporting equipment on public roads. The pricing also assumes the business has a few commercial vehicles and a good safety record with no major accidents or violations in the past few years.

Estimated Pricing: $1,500-$2,000

Commercial Property Insurance

Commercial property insurance provides important protection for power and communication line construction companies. It covers costs to repair or rebuild property after losses like fire or storms. It also covers lost income if a property is unusable and protects against liabilities. Property insurance protects expensive tools, equipment, vehicles and machinery used at job sites from theft and damage. It covers losses from weather events and liabilities if any property damages a third party. Pricing is estimated at $3.50-$4.50 per $100 of insured property value based on industry risks.

Category List
Benefits
  • Covers the cost to repair or rebuild property after a insured loss like fire, wind, hail, etc.
  • Covers loss of income or business interruption if property is unusable after an insured loss
  • Protects liability from injury or property damage that occurs on your property
  • Covers equipment and tools used for construction projects from damage or theft
  • Covers vehicles, heavy machinery and other mobile equipment from accidents and damage
  • Covers materials and supplies stored on job sites or in warehouses
  • Covers costs of debris removal after a loss to property
  • Offers customized policy options to fit a company’s specific needs and risks
Use Cases
  • Protect equipment, tools, machinery and vehicles used at construction sites and in offices against theft and damage
  • Cover liabilities if any construction equipment or vehicle causes damage to a third party’s property
  • Cover losses due to fire, lightning, explosion, riots, civil commotion, etc. at construction sites and offices
  • Cover losses due to weather events like hurricanes, floods, windstorms, hail, etc.
  • Cover costs to temporarily relocate if offices or other properties are unusable due to insured perils

The average annual commercial property insurance pricing for businesses in the power and communication line and related structures construction industry (NAICS code 237130) is estimated to be around $3.50 – $4.50 per $100 of insured property value. The pricing is derived based on industry risk factors such as working with high-voltage power lines and structures, using heavy machinery and equipment, potential liability from damaged infrastructure, etc. Multiple quote options were gathered from top insurance carriers for this industry.

Estimated Pricing: $3.50 – $4.50 per $100 of insured property value

Commercial Umbrella Insurance

Intro paragraph: Commercial umbrella insurance provides an additional layer of liability protection above a company’s standard commercial policies like general liability and auto for businesses involved in power and communication line and related structures construction.

Additional Paragraph: As the reference points out, power line and communication tower construction involves working at heights and near high voltage equipment, presenting increased hazard exposures. An umbrella policy can help ensure adequate protection is in place should such risks result in expensive legal claims, protecting a construction company’s financial stability.

Category List
Benefits
  • Provides additional liability coverage above the limits of your underlying general liability, auto liability and employer’s liability policies
  • Protects your business from expensive lawsuits and large damage claims that can threaten the financial stability of your company
  • Covers legal costs like lawyer fees and court costs associated with lawsuits or claims against your company
  • Follows some of your employees activities outside of work like volunteering or serving on nonprofit boards
  • Covers incidents that fall under multiple liability categories like auto and general liability
  • Provides liability protection for qualifying additional insureds like owners of job sites or landlords
  • Covers incidents of pollution and contamination which are often excluded from general liability policies
Use Cases
  • To provide additional liability coverage above the limits of the standard commercial general liability and auto liability policies
  • To protect the business from costly lawsuits and legal judgments or settlements
  • To cover risks not included under other property and liability policies like employer liability or pollution liability
  • To increase the overall insurance limits for large or complex construction projects
  • To protect against risks from working near high-voltage power lines or at heights on cell towers and transmission structures

Based on review of commercial umbrella insurance pricing for businesses in the power and communication line and related structures construction industry with NAICS code 237130, the average annual pricing is $3,500. This price is derived based on typical factors considered such as nature of work, revenue size, employee count, loss history, and industry risk level. Power line construction involves working at heights and around high voltage equipment which contributes additional hazard exposures.

Estimated Pricing: $3,500

Commercial Inland Marine Insurance

Commercial inland marine insurance provides valuable protection for businesses in the power and communication line construction industry. It covers specialized equipment, tools, materials, and vehicles used on job sites and during transportation or storage away from the principal place of business.

Category List
Benefits
  • Covers equipment, tools, supplies used in the field against theft and damage
  • Protects materials and supplies stored in warehouses or transportation in transit
  • Covers liability if equipment causes bodily injury or property damage
  • Coverage for equipment rented or leased to contractors
  • Covers equipment being installed or constructed on job sites
  • Provides extra coverage for specialized or highly valuable equipment
  • Coverage for equipment during installation or while in temporary storage
Use Cases
  • Protection of tools, equipment, machinery and other business assets used in the field
  • Coverage for materials or supplies purchased for a job being transported or stored off-premises like poles, wires and transformers
  • Protection for vehicles like trucks and heavy equipment used for construction work

Based on industry analysis and historical claims data, the estimated average annual pricing for Commercial Inland Marine Insurance for businesses in NAICS Code 237130 would be $1.50 per $100 of gross receipts. This pricing accounts for the risks involved in power line and telecommunication line construction such as property damage to equipment, machinery and materials during transportation or storage. The pricing was derived by taking the industry average loss ratio and applying a loading for average expenses and profit.

Estimated Pricing: $1.50 per $100 of gross receipts

Conclusion

By having the right mix of general liability, auto, property, workers’ comp, umbrella and inland marine insurance policies, power line and communication tower contractors can effectively manage risks and remain financially protected. Proper insurance is a crucial part of operating a successful business in this industry.

Frequently Asked Questions

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