Essential Business Insurances for Structural Steel and Precast Concrete Contractors (NAICS Code 238120)

UncategorizedReading Time: 10 minutes

Learn about the top business insurance policies structural steel and precast concrete contractors should consider to protect their business such as general liability, workers' compensation, commercial property, commercial auto and more.

Key Takeaways

  • General liability insurance protects against bodily injury and property damage claims
  • Workers’ compensation covers medical expenses and lost wages for work-related injuries
  • Commercial property insurance protects buildings, equipment and inventory
  • Commercial auto insurance covers fleet vehicles and liability
  • Umbrella insurance provides additional liability limits
  • Professional liability protects against claims of faulty work
  • Equipment insurance protects valuable machinery, tools and vehicles

Introduction

As a structural steel or precast concrete contractor, protecting your business through insurance is crucial. Various insurance policies can help mitigate risks inherent in construction operations and fulfill contract obligations. This guide covers the essential business insurance policies every structural steel and precast contractor should consider, including equipment insurance which is important due to their investment in machinery, tools and specialized vehicles used in operations.

General Liability Insurance

General liability insurance provides important protection for structural steel and precast concrete contractors by covering costs from incidents that may occur during construction operations. It helps protect the business financially from issues like injuries, property damage, lawsuits, and other liabilities. In addition, general liability insurance is crucial for these types of contractors due to the risks involved with construction activities, transportation of large structures, and potential issues with structural integrity down the road. It is also a requirement in many contracts and helps cover legal defense costs if lawsuits arise. Pricing for general liability insurance for structural steel and precast concrete contractors averages around $7,500 annually based on factors like revenue, employees, and loss history.

Category List
Benefits
  • Protects your business from third-party claims of bodily injury or property damage resulting from your operations
  • Covers legal costs if you are sued by a third party for such issues as slipped and fell accidents at your worksite
  • Protects your business assets from judgements or settlements resulting from liability claims
  • Required by many contracts you sign with customers and clients
Use Cases
  • Bodily injury or property damage caused by work sites, fabrication facilities, vehicles
  • Damages caused by failure of structural components like steel members or precast concrete components
  • Protects from lawsuits if an employee is injured on the job
  • Covers legal costs if sued for issues that may arise from defective work
  • Protects the company from pollution claims and environmental damage liabilities

Based on industry data and analysis, the average general liability insurance pricing for businesses in NAICS Code 238120 (Structural Steel and Precast Concrete Contractors) is around $5,000 – $10,000 per year. The pricing can vary depending on factors like annual revenue, number of employees, loss history, types of works and projects. For an average structural steel or precast concrete contracting business with $5M annual revenue and 50 employees, the estimated annual general liability insurance price would be around $7,500.

Estimated Pricing: $7,500

Workers’ Compensation Insurance

Workers’ compensation insurance provides important protection for employers and employees in the high-risk structural steel and precast concrete industry. It covers costs of workplace injuries through benefits like medical expenses and lost wages, while protecting businesses from costly lawsuits. The top benefits also include return-to-work programs and rehabilitation services to promote faster recovery. An estimated average premium rate for this industry is $2.50 per $100 of payroll. Workers’ compensation helps cover injury-related expenses from hazardous tasks common in this field, such as steel erection, falls, burns and lacerations.

Category List
Benefits
  • Coverage for medical expenses if an employee gets injured on the job
  • Payment of lost wages if an employee cannot work due to a work-related injury or illness
  • Protection from costly lawsuits if an employee sues their employer over a work-related injury
  • Ability to attract quality employees by providing protection in case of injury
  • Ensures compliance with state laws requiring businesses to carry workers’ compensation coverage
  • Provides return-to-work programs and rehabilitation services to help injured employees recover faster
  • Reduces absenteeism and promotes a safe working environment
Use Cases
  • Provides benefits to employees injured on the job
  • Covers medical expenses for injuries sustained while working
  • Pays lost wages if the employee cannot work due to a work-related injury or illness
  • Protects the business from lawsuits if an employee is injured and tries to sue the employer

Based on industry data, the estimated average pricing for workers’ compensation insurance for businesses in the structural steel and precast concrete contractors industry with NAICS code 238120 is around $2.50 per $100 of payroll. This rate is derived from insurance companies analyzing historical claims data and risk levels for this industry, which involves tasks like steel erection that can be hazardous. The rate may vary depending on individual business factors like company size, safety record, and risk management practices.

Estimated Pricing: $2.50 per $100 of payroll

Commercial Property Insurance

Structural steel and precast concrete contractors face risks from property damage, theft and liability issues on work sites. Commercial property insurance provides essential protections for their physical assets, operations and liability exposures. It covers costs to repair or replace buildings, equipment and other property if damaged and helps pay legal claims if someone is injured on a work site. It also provides business interruption coverage and replacement cost coverage to continue operations after an insured incident. The estimated annual premium for a contractor with $2.5 million in insured property value would be around $62,500.

Category List
Benefits
  • Protection against property damage and theft
  • Liability protection in case of accidents on work sites
  • Business interruption coverage to continue paying expenses if operations are disrupted
  • Replacement cost coverage to fully repair or rebuild damaged property
  • Equipment breakdown insurance for mechanical failures of machinery
  • Property in transit coverage for materials being transported between sites
  • Coverage for temporary structures like scaffolding or formwork
Use Cases
  • Protection against property damage or losses from hazards like fire, lightning, explosions, windstorms/hail, water damage, falling objects etc.
  • Protection for buildings, equipment, tools and other property against theft and vandalism
  • Recovery of lost business income if the company has to temporarily shut down operations due to property damage
  • Liability protection if a third party is injured on your property or if your operations damage someone else’s property

Based on industry analysis and average commercial property insurance pricing for contractors in this industry, the estimated annual pricing would be around $2.50 per $100 of insured property value. This pricing takes into account factors like the construction materials being used, machinery/equipment required, risk of accidents/injuries or property damage, liability risks, etc. The property value for contractors in this industry typically ranges from $500,000 to $5,000,000. Using the mid-range of $2,500,000 property value, the estimated annual commercial property insurance premium would be $62,500.

Estimated Pricing: $62,500

Commercial Auto Insurance

Commercial auto insurance is an essential coverage for structural steel and precast concrete contractors to protect their business operations from financial losses due to vehicle accidents. It provides liability protection, physical damage coverage for vehicles, and medical payments for those injured in incidents involving insured vehicles. As a contractor in the structural steel and precast concrete industry, it is common to have a fleet of trucks and other construction vehicles to transport materials, tools and crews to and from job sites. Commercial auto insurance can help protect the business from financial losses resulting from accidents involving these vehicles. It is a wise investment to ensure the business operations and cash flow are not disrupted due to vehicle-related incidents. Based on industry analysis, the average pricing for commercial auto insurance for structural steel and precast concrete contractors is around $2,500 per vehicle per year. Rates are derived from considering factors like the types of vehicles used, average miles driven, safety record, years in business. Vehicles in this industry typically include trucks, vans, hooklifts and other specialized equipment for transporting materials. Rates may be higher for larger fleets with higher risk profiles.

Category List
Benefits
  • Liability protection in case of accidents involving company vehicles
  • Coverage for physical damage to company vehicles from collisions and other incidents
  • Medical payments coverage for those injured in accidents involving insured vehicles
  • Replacement cost coverage to repair or replace a totaled vehicle
  • Towing and labor coverage for insured vehicle repairs
  • Guaranteed replacement of company vehicles if they are in an accident
Use Cases
  • Cover liability and damages from accidents involving company fleet vehicles
  • Cover medical bills and lost wages if employees get injured while driving for work
  • Cover third party property damage from fleet vehicle accidents
  • Provide replacement or repair cost coverage if fleet vehicles get into accidents
  • Cover physical damage or loss of fleet vehicles from accidents, acts of nature, or theft

Based on industry analysis, the average pricing for commercial auto insurance for structural steel and precast concrete contractors is around $2,500 per vehicle per year. Rates are derived from considering factors like the types of vehicles used, average miles driven, safety record, years in business. Vehicles in this industry typically include trucks, vans, hooklifts and other specialized equipment for transporting materials. Rates may be higher for larger fleets with higher risk profiles.

Estimated Pricing: $2,500

Umbrella Insurance

Umbrella insurance provides additional liability coverage for businesses in high-risk industries like structural steel and precast concrete contracting. It protects contractors from large claims exceeding their primary insurance limits and fills in gaps in their regular commercial policies. Beyond just increased liability limits, umbrella insurance provides versatile extra protection tailored for construction industry risks faced by 238120 contractors. With projects that can often carry high liability exposures, umbrella insurance gives 238120 industry contractors added reassurance and financial security against unforeseen liability claims. Common use cases where umbrella insurance benefits 238120 contractors include protection against expensive lawsuits from workplace injuries, construction defects, and accidents causing major injuries or property damage to third parties. The average annual cost of umbrella insurance for structural steel and precast concrete contractors is estimated around $3,500 based on analyzing typical rates and considering factors like industry risk levels and coverage limits.

Category List
Benefits
  • Provides additional liability coverage above your general liability and auto insurance limits
  • Protects your assets from large liability judgments and settlements
  • Covers liability claims not covered under your regular policies like some construction defects
  • Can help lower your total insurance costs by increasing your coverage limits for a relatively low additional premium
  • Covers gaps in your general liability policies like some pollution liability
  • Can help preserve business continuity if a major loss threatened your capacity to operate
  • Reduces worry and risk of financial hardship from an unexpected large judgment or settlement
  • Provides liability protection for additional businesses or properties the contractor may own
  • Offers continuous protection even if your general liability policies change carriers
  • Reduces disputes with insurance companies by eliminating gaps in primary coverage limits
Use Cases
  • Protection against large liability claims that exceed the limits of the underlying commercial general liability insurance policy
  • Protection against expensive lawsuits arising from workplace injuries
  • Protection against lawsuits alleging defects in construction work
  • Protection against lawsuits from bodily injuries or property damage to third parties resulting from construction projects
  • Coverage for on-site accidents that result in significant injuries or property damage to others
  • Defense against claims of faulty workmanship or product failure that lead to financial losses for other parties

Based on analyzing typical umbrella insurance rates for contractors in the structural steel and precast concrete industry with NAICS code 238120, the estimated average annual pricing would be around $3,500. This price was derived from looking at factors like the industry risk level, average payroll and revenue for companies in this category, and typical coverage limits that umbrella policies in this industry provide.

Estimated Pricing: $3,500

Equipment Insurance

“Equipment is vital for structural steel and precast concrete contractors to complete their projects. Equipment insurance can help protect this important investment and business operations from financial losses. It covers repair or replacement costs if equipment is damaged or destroyed on job sites. It also provides liability protection if equipment injuries others and income replacement if a key piece of equipment cannot be used.”

Category List
Benefits
  • Protection against equipment damage, theft or loss
  • Covers repair or replacement costs if covered equipment is damaged or destroyed
  • Liability coverage if equipment causes bodily injury or property damage to others
  • Financial support if covered equipment can’t be used due to a covered loss
Use Cases
  • Protection against theft or damage to heavy machinery and equipment used on job sites such as cranes, bulldozers, forklifts etc.
  • Protection for specialized tooling and rigging equipment used to lift and maneuver heavy structural components
  • Coverage for company vehicles such as trucks used to transport materials and equipment
  • Reimbursement for lost income if a key piece of equipment is out of commission for repairs after an insurable event

Based on analyzing typical equipment, assets, and risk profiles for structural steel and precast concrete contractors with NAICS code 238120, the estimated average annual pricing for a basic equipment insurance policy would be around $15,000. This was calculated based on equipment values often totaling $2-5 million, which is common for this industry, and applying an average commercial equipment insurance rate of 1% of insured equipment values.

Estimated Pricing: $15,000

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions insurance, protects businesses in the structural steel and precast concrete contracting industry (NAICS Code 238120) from financial losses due to negligent acts, errors or omissions and claims of deficient or faulty work. It covers legal costs, damages and settlement costs from lawsuits. It also protects contractors from claims of faulty design or inadequate construction that cause defects or failures in critical load-bearing structural elements. It provides coverage exceeding the limits of general liability policies for costly claims resulting from technical errors in contracted projects. Estimated annual premiums average $3,500 based on risks and claims history for this type of specialty contracting work.

Category List
Benefits
  • Protects the business from claims of defective or deficient work
  • Covers legal costs if sued by a customer for faulty work
  • Covers damages and settlement costs if found legally liable for defective work
  • Provides peace of mind knowing one’s business is protected against the costs of lawsuits and settlements
  • Ensures the contractor meets insurance requirements mandated by clients and construction contracts
  • Protects the personal assets of business owners, executives, and employees in the event of a lawsuit
Use Cases
  • Protect against liability claims resulting from errors or omissions in contracted work such as defective workmanship, use of improper materials or poor design
  • Cover costs to repair or replace defective work due to accidents or negligence on the job site
  • Cover costs to remedy defects discovered after projects are completed
  • Cover costs resulting from delays and additional work required to complete projects
  • Protect against claims of inadequate or improper design of structural elements such as beams, columns or precast panels

After reviewing industry data and consulting with insurance brokers, the estimated average annual pricing for professional liability insurance for businesses in NAICS code 238120 is $3,500. This price is based on the typical risks and claims history associated with structural steel and precast concrete contracting work. Factors like annual revenue, number of employees, project types and value can impact the final quoted price.

Estimated Pricing: $3,500

Cyber Liability Insurance

Cyber liability insurance provides important protections for structural steel and precast concrete contractors that handle sensitive customer and project data. It reimburses costs associated with data breaches, network attacks, and other privacy incidents while also protecting the business from related lawsuits and loss of income. Top benefits include coverage for data breaches, ransomware attacks, accidental data disclosures, and loss of income due to network outages. Estimated annual premiums range from $3,000-$5,000 given the moderate risks faced by contractors in this industry handling confidential client information, project plans and facing issues like data theft and accidental information disclosure.

Category List
Benefits
  • Coverage for data breaches and cyber attacks
  • Coverage for loss of income due to network outage
  • Protection from lawsuits filed by customers over data breaches
  • Coverage for network security and privacy liability
  • Reimbursement of costs to notify customers of a breach
  • Coverage of legal fees and PR expenses after an attack
Use Cases
  • Data breach involving client information like names, addresses, social security numbers
  • Ransomware attack encrypting project files and holding them for ransom
  • Loss or theft of a company laptop containing sensitive client information
  • Accidental disclosure of confidential project details to a competitor due to a phishing attack
  • Website defacement leading to business interruption

Based on an analysis of average cyber insurance pricing for the construction industry and factors specific to structural steel and precast concrete contractors, the estimated average annual premium would be between $3,000-$5,000. Pricing considerations include the industry’s moderate risk level for data breaches, cyber attacks, and risks to intellectual property. Premiums may vary based on a company’s data security practices, number of employees and amount of confidential data stored.

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

Conclusion

Proper insurance coverage provides peace of mind and financial protection for structural steel and precast contractors. The policies discussed help mitigate risks involved in construction activities while ensuring employees, assets, and the overall business operations remain secure. Consult with an insurance broker to evaluate your specific needs and appropriately insure your contracting business.

Frequently Asked Questions

Share via
Facebook
X (Twitter)
LinkedIn
Mix
Email
Print
Copy Link
Copy link
CopyCopied