Key Takeaways
- Consider general liability insurance to protect from third-party lawsuits over injuries or property damage.
- Get commercial auto insurance to cover vehicles used for construction projects and transport.
- Maintain workers’ compensation insurance as required by law to cover employee injuries.
- Invest in commercial property insurance for tools, equipment and materials on job sites.
- Insure expensive construction vehicles and machinery with equipment insurance.
- Evaluate commercial umbrella insurance for additional liability protection.
- Examine professional liability insurance for protection against design/construction errors.
Introduction
Businesses in the heavy construction industry face a variety of risks that traditional business insurance policies don’t fully cover. This article explores the top seven insurance options construction contractors in NAICS Code 2379 should consider to properly protect their business operations, property, vehicles, employees and reputation.
General Liability Insurance
General liability insurance is an important coverage for businesses in the construction industry to protect from costly legal liabilities. It covers claims from injuries, property damage and lawsuits that may occur during construction projects. General liability insurance provides benefits like protecting a construction business from third-party liability claims, covering costs of injuries to customers or the public, and paying damages if a subcontractor causes injury or property damage. It also covers common risks for the construction industry such as injuries to workers and the public, property damage from equipment, and lawsuits related to work done or faulty construction. Based on the references, the estimated average annual pricing for general liability insurance for a business in this industry is $5,000-$7,000.
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Based on analyzing insurance rates for businesses in the Other Heavy and Civil Engineering Construction industry with NAICS code 2379, the estimated average annual pricing for general liability insurance is $5,000-$7,000. This price range was derived from comparing insurance quotes from several top carriers for a business in this industry with 15 employees and $3 million in annual revenues. General factors that influence pricing include number of employees, annual revenues, risk level of operations, safety records and claims history.
Estimated Pricing: $5,000-$7,000
Commercial Auto Insurance
Commercial auto insurance is crucial for protecting businesses in the other heavy and civil engineering construction industry from financial loss. It offers benefits like liability protection, vehicle replacement coverage, and uninsured motorist coverage to help contractors avoid financial ruin if an accident occurs involving their fleet or hired/non-owned vehicles used for construction projects. Businesses in this industry typically pay between $1,500-$2,000 annually per vehicle for commercial auto policies, with rates determined by factors like vehicle type, driver history, safety record, and business operations details. Given the hazardous nature of activities in this field like excavation and hauling, vehicle exposures tend to be higher, impacting insurance pricing.
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Based on national averages, businesses in the NAICS 2379 Other Heavy and Civil Engineering Construction industry can expect to pay around $1,500-$2,000 annually per vehicle for commercial auto insurance. Rates are determined based on things like vehicle type, driver history, safety record, and business operation details. Since this industry involves activities like excavation, hauling, road construction, etc., vehicle exposures tend to be higher which influences pricing upwards.
Estimated Pricing: $1,500-$2,000
Workers Compensation Insurance
Workers compensation insurance provides essential protections and benefits for both employees and employers in the heavy construction industry. It ensures employees receive financial assistance for job-related injuries and removes the risk of expensive lawsuits for businesses. The top benefits of workers compensation insurance for construction businesses include covering medical expenses and lost wages for injured employees, as well as protecting companies from liability lawsuits. It also lowers other insurance costs and demonstrates a commitment to workforce safety. Key uses involve covering medical bills, lost pay, permanent disability, and protecting against employee lawsuits over injuries. Rates are typically around $2.50 per $100 of payroll for construction firms in this industry.
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Based on industry data and risk assessments, the average estimated pricing for workers compensation insurance for businesses in the Other Heavy and Civil Engineering Construction industry (NAICS 2379) is around $2.50 per $100 of payroll. This rate is derived from analyzing past injury and claim statistics within the industry which show an average frequency and severity of injuries compared to similar construction industries. Factors like company size, safety record, and type of work can influence final rates but on average businesses in this industry can expect to pay around $2.50 per $100 of payroll for their workers compensation premiums.
Estimated Pricing: $2.50 per $100 of payroll
Commercial Property Insurance
Commercial property insurance provides crucial protection for contractors in the heavy construction industry. It protects businesses from financial loss due to accidental damage or theft of expensive equipment, tools, supplies and unfinished work. It also covers liability risks on job sites. Some key benefits of commercial property insurance for heavy construction contractors include replacing damaged or stolen equipment, covering business income if operations are disrupted, and providing specialized coverage tailored for large machinery commonly used in civil engineering projects. Rates tend to be higher for this industry compared to less risky professions due to the nature of heavy construction work. Commercial property insurance is essential for construction businesses to safeguard their valuable property and equipment no matter where work takes place.
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Based on typical commercial property insurance pricing factors such as location, property value, liability exposure, prior claims, and industry risk level, the estimated average annual pricing for commercial property insurance for businesses in the NAICS 2379 industry is around $3.50 per $100 of insured property value. This industry has higher risks than lower risk professions due to the nature of heavy construction work, so rates tend to be on the higher side to account for this increased risk exposure.
Estimated Pricing: $3.50 per $100 of insured property value
Equipment Insurance
Equipment insurance provides vital protection for businesses in the heavy construction industry that rely on expensive vehicles, machinery, and tools to operate. It protects their investment and ensures they can continue serving clients even after an unforeseen incident damages or destroys their equipment.
Construction companies in the other heavy and civil engineering industry that build infrastructure projects like roads, bridges, dams, etc. depend on heavy equipment worth millions of dollars. Equipment insurance is essential to keep these businesses running smoothly if their equipment is involved in an accident, suffers weather damage or is stolen. It also covers liability should their leased equipment injure people or damage property on work sites or elsewhere. Estimated premiums typically range from $50,000-$100,000 annually depending on total insured values, demonstrating how critical coverage is for companies in this industry.
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Based on typical insurance rates for construction equipment, the average annual premium for equipment insurance would be approximately $2.50 to $5.00 per $100 of equipment value. Businesses in this industry tend to have higher value equipment like bulldozers, excavators, cranes, etc. Assuming the typical business in this industry has around $2 million in insured equipment values, the estimated annual premium would be between $50,000 to $100,000.
Estimated Pricing: $50,000 to $100,000
Commercial Umbrella Insurance
Commercial umbrella insurance provides additional liability protection for businesses in industries like heavy and civil engineering construction that face significant exposure to lawsuits. It protects against claims exceeding primary general liability limits and provides globally consistent coverage. Umbrella insurance also covers certain risks not included in standard policies, extends liability protection during large claims, and allows underlying policies to remain intact if an umbrella claim is filed. Moreover, it helps lower total insurance costs by consolidating coverage at higher limits.
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Based on industry analysis, the average commercial umbrella insurance pricing for businesses in the NAICS Code 2379 (Other Heavy and Civil Engineering Construction) industry is $2.50 per $100 of coverage. This price was derived from averaging published rate tables from several top insurance carriers for this industry type and taking into account factors like claims history, operations, and primary general liability limits maintained.
Estimated Pricing: $2.50 per $100 of coverage
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions insurance, is a crucial coverage for businesses in the civil engineering industry to protect from financial losses due to negligent acts, mistakes, or omissions. It covers lawsuits, legal fees, and damages claims that may arise from errors in design, construction defects, faulty plans, or other professional services issues. Some key benefits of professional liability insurance include protecting company assets, covering defense costs if sued, limiting personal liability, providing risk management resources, and demonstrating financial responsibility to clients. Top use cases involve construction design errors, project failures, inadequate services claims, job site injuries and damages, and pollution risks from construction activities. Estimated annual pricing is around $5,000-$10,000 depending on company size and risk factors.
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Based on analysis of industry risk factors and average claim histories, the estimated annual pricing for professional liability insurance for businesses in the NAICS Code 2379 (Other Heavy and Civil Engineering Construction) industry is around $5,000 – $10,000 per year. The pricing is typically calculated based on factors like annual revenue, number of employees, types of services provided, loss history, and other risk classification determinants set by the insurance provider.
Estimated Pricing: $5,000 – $10,000
Conclusion
By maintaining the right mix of general liability, commercial auto, workers’ compensation, commercial property, equipment, commercial umbrella and professional liability insurance, construction firms can gain solid financial protection from unexpected losses. This allows them to focus on running their business operations safely and successfully without undue risk.