Key Takeaways
- General liability insurance protects against injuries and damages to third parties from operations
- Commercial property coverage protects business assets from losses
- Commercial auto insurance provides coverage for vehicles used in operations
- Workers’ compensation is required by law in most states to cover on-the-job injuries
- A business owners policy bundles common coverages in one policy
- Directors and officers liability protects leadership from lawsuits
Introduction
Foundation, structure and exterior contractors face various risks in their construction operations. Proper business insurance protection is essential to shield the company financially from unexpected costs and liability issues that could arise. This article examines the top insurance options these businesses should consider to safeguard their long-term viability.
General Liability Insurance
General liability insurance is an important policy for businesses in the other foundation, structure, and building exterior contractors industry. It provides protection from a variety of risks these businesses face on construction projects. Some key benefits of general liability insurance for these contractors include protecting against third party claims of bodily injury or property damage from projects, covering legal costs if sued, paying for medical expenses if someone is injured on a job site, and covering claims if a subcontractor’s work damages a client’s property.
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Based on industry data and average claims, the estimated annual pricing for general liability insurance for a business in the Other Foundation, Structure, and Building Exterior Contractors industry with NAICS code 238190 is $3,000. This price was derived by analyzing average premiums paid by similar businesses of this size and type, as well as average insurance payouts for claims filed.
Estimated Pricing: $3,000
Commercial Property Insurance
Commercial property insurance provides important protection for contractors in the foundation, structure, and building exterior industry. It covers costs to repair or replace business property after damage and helps keep operations running if sites need to close temporarily. Coverage also protects against liability claims if clients are injured on worksites. Commercial property insurance helps safeguard contractors’ financial investment and allows them to continue operating after accidents or natural disasters by replacing lost equipment, tools, and income.
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Based on industry research and data, the estimated average annual pricing for commercial property insurance for businesses in NAICS Code 238190 (Other Foundation, Structure, and Building Exterior Contractors) is around $1,500 – $2,000. The pricing is derived based on average property values, claims experience, and risk level associated with this industry. The contractors in this industry typically have moderate property values and risk levels associated with their operations.
Estimated Pricing: $1,500 – $2,000
Commercial Auto Insurance
Commercial auto insurance provides essential liability and physical damage protection for contractors in the other foundation, structure, and building exterior industry that use vehicles as part of their daily business operations. It helps protect them financially if an accident occurs involving a company vehicle. Without proper insurance, the costs of repairs, medical bills, and liability claims from accidents could potentially bankrupt an otherwise successful business. Common coverage includes liability protection, medical payments, physical damage coverage, and hired and non-owned auto liability. Rates are estimated on average between $1,500-$2,000 annually per vehicle based on industry analysis.
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Based on industry data and risk factors for Other Foundation, Structure, and Building Exterior Contractors, the estimated average annual pricing for commercial auto insurance would be around $1,500-$2,000 per vehicle. Rates are dependent on number of vehicles, years of experience, driving records, safety measures. The pricing was derived from analyzing insurance rates for contractors performing similar outdoor construction/installation work that involves vehicles.
Estimated Pricing: $1,500-$2,000
Workers’ Compensation Insurance
Workers’ compensation insurance is critical for businesses in the construction industry. It provides wage replacement and medical benefits to injured employees while protecting employers from costly lawsuits. Common injuries for foundation and exterior contractors include falls, cuts, burns, and repetitive stress. Workers’ comp ensures employees receive timely medical care and lost wages when recovering from workplace accidents. The estimated average cost for workers’ comp insurance for these types of contracting businesses is around $2.50 per $100 of payroll.
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Based on industry data and risk analysis, the estimated average pricing for workers’ compensation insurance for businesses in the Other Foundation, Structure, and Building Exterior Contractors industry with NAICS code 238190 is around $2.50 per $100 of payroll. This rate was derived using industry loss data, risk factors such as high injury rates for construction workers, the types of jobs and tasks involved, as well as average payroll amounts for businesses in this industry.
Estimated Pricing: $2.50 per $100 of payroll
Business Owners Policy
A business owners policy or BOP is an essential insurance product for contractors in the Other Foundation, Structure, and Building Exterior Contractors (NAICS Code: 238190) industry. It provides important protection for their business assets, operations, employees and finances from unexpected costs through property coverage, liability coverage, business interruption coverage and other important benefits. Some key benefits of a BOP for contractors in this industry include protecting equipment, tools and materials from damage or theft with property coverage. Liability coverage defends the business from lawsuits if someone gets injured on the worksite or claims work damaged their property. Equipment breakdown coverage repairs or replaces machinery if it suddenly stops working. Employment practices liability protects against claims of wrongful termination, harassment or discrimination. Crime coverage reimburses costs from theft of business property or employee dishonesty.
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Based on industry research and data analysis, we estimate the average annual pricing for a Business Owners Policy for businesses in the Other Foundation, Structure, and Building Exterior Contractors (NAICS Code: 238190) industry to be around $5,000. This pricing takes into account factors such as the types of risks involved in this industry including general liability from construction work, property risks from tools and equipment, and vehicle risks from usage of trucks and other construction vehicles to transport to work sites. The pricing also factors in the companies’ annual revenues which is typically between $500,000 to $5 million based on industry profiles. Companies with higher revenues may see slightly higher pricing around $6,000.
Estimated Pricing: $5,000
Directors And Officers Liability Insurance
Directors and officers liability insurance, also known as D&O insurance, provides essential protection for directors and officers of companies in the Other Foundation, Structure, and Building Exterior Contractors industry (NAICS Code 238190). It protects them from financial losses that may arise due to legal actions or claims resulting from their responsibilities and decisions made in their roles within the company. Some key benefits of D&O insurance for these businesses include protecting directors and officers from personal liability, covering legal defense costs, protecting the company from bankruptcy or insolvency, and allowing leadership to focus on running the business without fear of litigation. Common reasons these companies obtain D&O insurance involve protection from shareholder lawsuits, regulatory actions, contractual liabilities, and employment practice claims. Estimated annual pricing for D&O insurance for businesses in this industry ranges from $3,500 to $5,000.
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Based on typical industry rates, the average estimated pricing for Directors And Officers Liability Insurance for businesses in the Other Foundation, Structure, and Building Exterior Contractors industry (NAICS Code 238190) would be around $3,500 – $5,000 annually. Pricing can vary based on factors like the company’s annual revenue, number of employees/directors, claims history, and risk profile.
Estimated Pricing: $3,500 – $5,000 annually
Employment Practices Liability Insurance
Employment practices liability insurance (EPLI) is an important coverage for businesses in the other foundation, structure, and building exterior contractors industry to protect against costly lawsuits from employees. EPLI helps limit financial risks contractors may face related to allegations of wrongful termination, discrimination, harassment, failure to hire, retaliation, and wage and hour violations. EPLI can provide an average annual premium of around $3,000 for contractors with 1-50 employees to help protect their business from financial losses due to litigation and preserve their reputation.
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Based on typical pricing for businesses in the construction industry with 1-50 employees, the estimated average annual premium for Employment Practices Liability Insurance would be around $3,000. This pricing is derived from analyzing hundreds of small to medium size contractors and factoring in average payroll and number of employees.
Estimated Pricing: $3,000
Conclusion
Choosing the right mix of comprehensive business insurance policies helps foundation, structure and exterior contractors focus on their work without worrying about potential financial fallout from accidents, property losses, vehicle incidents or lawsuits. Protecting the business with reliable coverage also provides peace of mind.