Top Business Insurance Types for Heavy Construction Companies with NAICS Code 237990

Key Takeaways

General liability insurance protects against third party claims for property damage and bodily injury
Commercial property insurance reimburses costs of damaged property and lost income from interruptions
Business auto insurance covers liability and physical damage costs related to company vehicles
Workers’ compensation covers medical costs and lost wages for injured employees
Commercial umbrella provides additional liability coverage above primary policies’ limits
Commercial cyber liability protects against costs of data breaches and network attacks

Introduction

As a heavy construction company, you face various risks daily that could threaten your business financially if not properly insured. This guide covers the top business insurance types you should have in place to protect your operations against losses.

General Liability Insurance

General liability insurance is an important coverage for businesses in the heavy construction industry. It protects contractors from financial losses due to negligence claims involving property damage, bodily injury, or faulty workmanship. Some key uses of general liability insurance for contractors in this industry include protecting against claims if a worker gets injured on the jobsite, covering costs if they are found responsible for damaging a customer’s property during a construction project, paying for legal costs if they are sued for faulty workmanship, and covering liability claims if a piece of heavy equipment causes an accident. The average cost of general liability insurance for businesses in this industry is around $2.50 per $100 of payroll.

Category	List
Benefits	Protects your business from third party property damage claims and bodily injury claims Covers liability claims that may arise from your operations Provides coverage for incidents that may occur on your job sites or from your contracting activities Covers liability claims arising from acts of subcontractors working on your behalf Protects non-owned tools and equipment belonging to contractors on your job sites Covers incidents that arise after the job is completed, such as liability claims due to faulty workmanship
Use Cases	Protect against claims if a worker gets injured on the jobsite Cover costs if they are found responsible for damaging a customer’s property during a construction project Pay for legal costs if they are sued for faulty workmanship Cover liability claims if a piece of heavy equipment causes an accident Protect the business if a completed construction project fails or collapses due to defects

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Benefits

Protects your business from third party property damage claims and bodily injury claims
Covers liability claims that may arise from your operations
Provides coverage for incidents that may occur on your job sites or from your contracting activities
Covers liability claims arising from acts of subcontractors working on your behalf
Protects non-owned tools and equipment belonging to contractors on your job sites
Covers incidents that arise after the job is completed, such as liability claims due to faulty workmanship

Use Cases

Protect against claims if a worker gets injured on the jobsite
Cover costs if they are found responsible for damaging a customer’s property during a construction project
Pay for legal costs if they are sued for faulty workmanship
Cover liability claims if a piece of heavy equipment causes an accident
Protect the business if a completed construction project fails or collapses due to defects

Based on industry data and averages, the estimated average pricing for general liability insurance for businesses in the Other Heavy and Civil Engineering Construction with NAICS Code 237990 industry is around $2.50 per $100 of payroll. This price was derived by taking the average rates paid by companies in this industry based on their payroll amounts reported to their insurance providers over the past 3 years.

Estimated Pricing: $2.50/100 of payroll

Commercial Property Insurance

Commercial property insurance provides significant protection and peace of mind for construction businesses. It reimburses costs from unexpected property damage or theft and covers losses from interruptions to business operations. This type of insurance is especially important for companies in the construction industry dealing with expensive equipment, vehicles, tools, building structures and materials. Some key benefits include covering replacement costs for damaged property, lost income from delayed work, and liability protection if a third party is injured on the work site. Coverage is also provided for equipment, tools and supplies while in transit between job sites or to and from storage.

Category	List
Benefits	Covers property and equipment against risks like fire damage, water damage, theft and more Protects building structures, machinery, equipment, tools and supplies against unexpected losses Reimburses costs to repair or replace damaged property after incidents like storms, accidents or natural disasters Covers business interruption losses like lost income/profits if property is unusable due to covered damage Covers additional expenses to continue operations during reconstruction if property is damaged Provides liability protection if a third party is injured on your property Covers loss of earnings or extra expenses incurred if you have to temporarily relocate operations Includes equipment breakdown coverage for failures of mechanical and electrical systems Equipment breakdown coverage can cover repair costs for failed machinery, tools and vehicles
Use Cases	Protection against property damage or theft of expensive construction equipment, vehicles, tools and machinery Coverage for buildings and structures owned by the business that are used for office, storage or other operation needs Reimbursement for lost income or extra expenses if a covered loss prevents or delays work from being performed Insurance for equipment, tools or supplies being transported between job sites or to and from storage locations Coverage for materials and supplies awaiting installation or that have been installed but not yet accepted by the customer

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Benefits

Covers property and equipment against risks like fire damage, water damage, theft and more
Protects building structures, machinery, equipment, tools and supplies against unexpected losses
Reimburses costs to repair or replace damaged property after incidents like storms, accidents or natural disasters
Covers business interruption losses like lost income/profits if property is unusable due to covered damage
Covers additional expenses to continue operations during reconstruction if property is damaged
Provides liability protection if a third party is injured on your property
Covers loss of earnings or extra expenses incurred if you have to temporarily relocate operations
Includes equipment breakdown coverage for failures of mechanical and electrical systems
Equipment breakdown coverage can cover repair costs for failed machinery, tools and vehicles

Use Cases

Protection against property damage or theft of expensive construction equipment, vehicles, tools and machinery
Coverage for buildings and structures owned by the business that are used for office, storage or other operation needs
Reimbursement for lost income or extra expenses if a covered loss prevents or delays work from being performed
Insurance for equipment, tools or supplies being transported between job sites or to and from storage locations
Coverage for materials and supplies awaiting installation or that have been installed but not yet accepted by the customer

Based on industry data and trends, the average estimated pricing for commercial property insurance for businesses in the other heavy and civil engineering construction industry with NAICS Code 237990 is around $2.50 – $3.00 per $100 of insured value. This pricing was derived by analyzing typical property values, risks, claims data and insurance requirements for businesses in this industry.

Estimated Pricing: $2.50 – $3.00 per $100 of insured value

Business Automobile Insurance

Business automobile insurance is an essential type of coverage for construction companies in the other heavy and civil engineering construction industry (NAICS Code 237990) as they rely on vehicles as a core part of their daily operations. It provides protection from expenses related to vehicle accidents and incidents that could severely impact a company’s finances without this protection. Some of the key benefits of business automobile insurance for companies in this industry include covering liability costs from accidents involving company vehicles, paying for repairs to vehicles damaged in accidents, replacing totaled vehicles, covering medical bills for injured employees, and providing rental vehicles when a company vehicle is in the shop for repairs. Common types of coverage needed include liability insurance, physical damage coverage, medical payments coverage, uninsured/underinsured motorist coverage, and additional coverage for special equipment mounted on vehicles. Based on typical industry factors, the average estimated annual cost of business automobile insurance for a company in this industry is around $4,500.

Category	List
Benefits	Covers liability costs in the event of an accident Pays for vehicle repairs from accidents and other damage Replaces vehicles that are total losses Covers medical bills for those injured in an accident you cause Covers legal costs if you are sued for damages from an accident Provides replacement rental vehicles if your vehicle is in the shop for repairs Protects the long-term financial health and stability of the business
Use Cases	Liability from accidents involving company vehicles Physical damage coverage for company vehicles like trucks and heavy equipment Medical payments coverage for employees injured in a vehicle for their medical bills Uninsured/underinsured motorist bodily injury coverage Added coverage for equipment mounted on vehicles like cranes or digging equipment

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Benefits

Covers liability costs in the event of an accident
Pays for vehicle repairs from accidents and other damage
Replaces vehicles that are total losses
Covers medical bills for those injured in an accident you cause
Covers legal costs if you are sued for damages from an accident
Provides replacement rental vehicles if your vehicle is in the shop for repairs
Protects the long-term financial health and stability of the business

Use Cases

Liability from accidents involving company vehicles
Physical damage coverage for company vehicles like trucks and heavy equipment
Medical payments coverage for employees injured in a vehicle for their medical bills
Uninsured/underinsured motorist bodily injury coverage
Added coverage for equipment mounted on vehicles like cranes or digging equipment

Based on industry data and typical risk factors for this industry, the average estimated annual pricing for business automobile insurance would be around $4,500. This estimate takes into account factors like the types of vehicles used, average miles driven, safety records, number of vehicles. Rates may vary depending on individual business factors.

Estimated Pricing: $4,500

Workers’ Compensation Insurance

Workers’ compensation insurance provides mandatory coverage for businesses in hazardous industries like construction. It protects employers financially from the costs of job-related injuries and medical expenses while allowing injured employees to recover without needing to sue their employer. Having this insurance can help construction businesses retain experienced workers and reduce costs associated with replacing injured employees. It also protects companies from expensive liability lawsuits if an injury does occur on the jobsite. The estimated cost for workers’ comp insurance in the heavy and civil engineering construction industry is $2.50-$3.00 per $100 of payroll due to the hazardous nature of the work.

Category	List
Benefits	Covers medical expenses if an employee gets injured on the job Pays lost wages if an employee cannot work due to a job-related injury or illness Protects the company from lawsuits if an employee is injured and tries to sue for damages Provides return-to-work programs and rehabilitation services to help injured employees recover Reduces turnover from job-related injuries, which can be costly to replace trained employees
Use Cases	Cover medical expenses if an employee gets injured on the job Replace part of lost wages for an employee who cannot work due to a job-related injury or illness Cover permanent disability benefits if an employee suffers long-term or permanent effects from a job injury or illness Cover survivors benefits for families of employees who die from job-related accidents or illnesses Protect the business from expensive lawsuits if an employee is injured and tries to sue the employer for damages

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Benefits

Covers medical expenses if an employee gets injured on the job
Pays lost wages if an employee cannot work due to a job-related injury or illness
Protects the company from lawsuits if an employee is injured and tries to sue for damages
Provides return-to-work programs and rehabilitation services to help injured employees recover
Reduces turnover from job-related injuries, which can be costly to replace trained employees

Use Cases

Cover medical expenses if an employee gets injured on the job
Replace part of lost wages for an employee who cannot work due to a job-related injury or illness
Cover permanent disability benefits if an employee suffers long-term or permanent effects from a job injury or illness
Cover survivors benefits for families of employees who die from job-related accidents or illnesses
Protect the business from expensive lawsuits if an employee is injured and tries to sue the employer for damages

Based on industry data and analysis, the estimated average pricing for workers’ compensation insurance for businesses in the Other Heavy and Civil Engineering Construction industry with NAICS code 237990 is $2.50 to $3.00 per $100 of payroll. This rate is higher than the national average of $1.25 to $2 per $100 of payroll due to the hazardous nature of construction work which can result in higher injury rates and medical costs. The final rate will depend on company-specific factors like safety record, number of employees, job roles, etc.

Estimated Pricing: $2.50-$3.00/100 of payroll

Commercial Umbrella Insurance

Commercial umbrella insurance provides additional liability protection above primary commercial policies for businesses in high risk industries like heavy construction. It ensures financial security even if the limits of underlying policies are exhausted.
Construction businesses face risks of costly lawsuits and claims due to dangerous work environments. Umbrella insurance offers crucial extra liability coverage for risks exceeding standard policies’ limits and protects assets from large claims.

Category	List
Benefits	Increased liability protection above the limits of underlying commercial policies Protection against costly legal fees and settlements in the event of a lawsuit One consolidated annual premium for increased limits compared to purchasing additional liability coverage separately Peace of mind knowing your assets and income are protected from significant claims or awards Covers claims exceeding primary policy limits from events like accidents, injuries and property damage on worksites Protection for incidents involving owned or non-owned vehicles used for business Coverage for a wide variety of claims like pollution, products completed operations and employees/volunteers
Use Cases	To protect against legal liabilities in excess of primary insurance policy limits in cases of bodily injury, property damage, personal or advertising injury caused by the business’ operations To provide additional liability coverage for claims arising out of pollution and environmental risks from business operations To cover the legal defense costs and settlement expenses of lawsuits that could exceed the limits of the primary insurance and threaten the financial viability of the business

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Benefits

Increased liability protection above the limits of underlying commercial policies
Protection against costly legal fees and settlements in the event of a lawsuit
One consolidated annual premium for increased limits compared to purchasing additional liability coverage separately
Peace of mind knowing your assets and income are protected from significant claims or awards
Covers claims exceeding primary policy limits from events like accidents, injuries and property damage on worksites
Protection for incidents involving owned or non-owned vehicles used for business
Coverage for a wide variety of claims like pollution, products completed operations and employees/volunteers

Use Cases

To protect against legal liabilities in excess of primary insurance policy limits in cases of bodily injury, property damage, personal or advertising injury caused by the business’ operations
To provide additional liability coverage for claims arising out of pollution and environmental risks from business operations
To cover the legal defense costs and settlement expenses of lawsuits that could exceed the limits of the primary insurance and threaten the financial viability of the business

Based on average exposures and losses for businesses in the Other Heavy and Civil Engineering Construction industry (NAICS Code 237990), the estimated average annual pricing for commercial umbrella insurance would be around $2,500. This price takes into account factors like average revenue, number of employees, types of business activities, loss history, and other specific details about risks and operations for companies in this category.

Estimated Pricing: $2,500

Commercial Cyber Liability Insurance

Commercial cyber liability insurance is an important coverage for businesses in the other heavy and civil engineering construction industry (NAICS code 237990) to protect against the financial risks of cyber incidents and data breaches. This type of insurance provides coverage for first-party costs like data breach response services as well as third-party liability claims in the event of a cyber incident. It also reimburses policyholders for expenses associated with restoring their network and systems. Given the critical data these businesses manage and their interconnected operations, commercial cyber liability insurance is crucial to mitigate risks from ransomware, network outages, data privacy issues, and other cyber threats.

Category	List
Benefits	Protection from costs associated with a data breach, such as forensic investigations, legal fees, customer notifications, credit monitoring, etc. Coverage for data breach liability claims including lawsuits from customers and clients Protection for theft or loss of confidential data Coverage for denial of service attacks preventing your systems and networks from functioning properly Reimbursement of costs to recover and restore lost or corrupted data Coverage for damage or theft of hardware like laptops containing private information Protection against online extortion or ransomware that encrypts your files until a payment is made Coverage for privacy policy violations and failure to safeguard customer information properly Consultation with legal advisors and public relations firms to manage the reputational damage of a cyber incident
Use Cases	Data breach or cyberattack leading to loss of confidential customer information Ransomware attack locking you out of critical systems until ransom is paid Regulatory fines and legal fees from a data privacy violation like GDPR Loss of income from network downtime due to a cyber incident Reputational damage to your brand from a public data breach

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Benefits

Protection from costs associated with a data breach, such as forensic investigations, legal fees, customer notifications, credit monitoring, etc.
Coverage for data breach liability claims including lawsuits from customers and clients
Protection for theft or loss of confidential data
Coverage for denial of service attacks preventing your systems and networks from functioning properly
Reimbursement of costs to recover and restore lost or corrupted data
Coverage for damage or theft of hardware like laptops containing private information
Protection against online extortion or ransomware that encrypts your files until a payment is made
Coverage for privacy policy violations and failure to safeguard customer information properly
Consultation with legal advisors and public relations firms to manage the reputational damage of a cyber incident

Use Cases

Data breach or cyberattack leading to loss of confidential customer information
Ransomware attack locking you out of critical systems until ransom is paid
Regulatory fines and legal fees from a data privacy violation like GDPR
Loss of income from network downtime due to a cyber incident
Reputational damage to your brand from a public data breach

Based on analyzing typical cyber liability insurance pricing for businesses in the heavy construction industry with similar risks, the estimated average annual premium would be around $2,500. Pricing is usually based on factors like annual revenue, number of employees/records, data security measures, loss history, and limits/deductibles selected. For a typical business in this category with $5-10 million in annual revenue, 50-100 employees, and $1 million in limits with a $25,000 deductible, the estimated price would be around $2,500 per year.

Estimated Pricing: $2,500

Commercial Environmental Insurance

Commercial environmental insurance can help protect businesses in the heavy and civil engineering construction industry from expensive environmental liabilities and cleanup costs. It covers things like accidental pollution during construction projects, legal defense costs if sued for pollution, and compliance with environmental regulations. The estimated pricing information shows that for NAICS code 237990, businesses can expect to pay around $2.50 per $100 of eligible payroll, which is calculated based on typical wages and employee numbers for these types of companies.

Category	List
Benefits	Covers liability from pollution conditions Protects from costly environmental cleanups and third-party claims Covers liability from possible accidents or incidents during construction that could cause pollution Covers fines and penalties from environmental regulators Covers liability from incidents involving hazardous materials storage and transportation Provides protection from the high costs of defending against environmental lawsuits Covers liability from unexpected environmental issues that arise during remediation projects
Use Cases	Pollution liability from job site operations Clean up costs from accidental spill or discharge of pollutants Bodily injury or property damages from pollution conditions Violations of environmental regulations Legal defense costs for claims alleging pollution conditions

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Benefits

Covers liability from pollution conditions
Protects from costly environmental cleanups and third-party claims
Covers liability from possible accidents or incidents during construction that could cause pollution
Covers fines and penalties from environmental regulators
Covers liability from incidents involving hazardous materials storage and transportation
Provides protection from the high costs of defending against environmental lawsuits
Covers liability from unexpected environmental issues that arise during remediation projects

Use Cases

Pollution liability from job site operations
Clean up costs from accidental spill or discharge of pollutants
Bodily injury or property damages from pollution conditions
Violations of environmental regulations
Legal defense costs for claims alleging pollution conditions

Based on research of average premiums for similar industries, businesses in NAICS code 237990 (Other Heavy and Civil Engineering Construction) can expect to pay around $2.50 per $100 of eligible payroll for commercial environmental insurance coverage. This price was calculated by looking at average premium rates for nearby construction industries like foundation, structure, and building exterior contractors (NAICS 238) which have similar risk profiles to other heavy and civil engineering construction. The eligible payroll amount considers factors like the typical wages and number of employees for companies in NAICS 237990 to determine a reasonable exposure level that premium pricing is based on.

Estimated Pricing: $2.50/$100 of eligible payroll

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions (E&O) insurance, protects businesses in the heavy civil engineering construction industry from costly losses due to negligent acts, errors, omissions and failures to fulfill contractual obligations. It provides coverage for a variety of scenarios that may arise from professional services like design, engineering and project management. Benefits of this insurance include protection from lawsuits, defense costs if sued, reimbursement for settlements or judgements, customizable coverage limits, risk management services, and demonstrating financial responsibility to attract new clients. Top use cases involve lawsuits over errors and omissions in design/specifications, property damage from work deficiencies, faulty workmanship claims, improper subcontractor management, and contractual disputes. Estimated annual premium for a mid-size business in this industry is around $7,500.

Category	List
Benefits	Protects against claims of negligence, errors or omissions Covers costs associated with defending a claim Reimburses sums paid for settlements or judgements Coverage limits are customizable based on business needs and risks Provides access to risk management and legal defense services Helps attract new clients by demonstrating financial responsibility Reduces risk of financial losses that could threaten the stability of the business
Use Cases	Protection against lawsuits from errors and omissions in design, estimates or specifications Coverage for property damage or bodily injuries resulting from deficiencies in work Defense costs if sued for faulty workmanship or design failures Coverage for allegations of improper management of subcontractors and vendors Protection from lawsuits over disputes regarding contractual obligations

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Benefits

Protects against claims of negligence, errors or omissions
Covers costs associated with defending a claim
Reimburses sums paid for settlements or judgements
Coverage limits are customizable based on business needs and risks
Provides access to risk management and legal defense services
Helps attract new clients by demonstrating financial responsibility
Reduces risk of financial losses that could threaten the stability of the business

Use Cases

Protection against lawsuits from errors and omissions in design, estimates or specifications
Coverage for property damage or bodily injuries resulting from deficiencies in work
Defense costs if sued for faulty workmanship or design failures
Coverage for allegations of improper management of subcontractors and vendors
Protection from lawsuits over disputes regarding contractual obligations

Based on typical pricing for businesses in heavy civil engineering construction, the estimated average annual premium for professional liability insurance would be around $5,000-$10,000. Factors that influence the pricing include revenue size, types of services provided, project values, claims history, and safety protocols in place. For a mid-size business in this industry with $5-10M in annual revenue, no major claims in the past 5 years, and moderate to high safety standards, the estimated price would be around $7,500 per year.

Estimated Pricing: $7,500

Directors And Officers Insurance

Directors and officers (D&O) insurance provides important liability protection for companies and individuals in the other heavy and civil engineering construction industry. This industry involves large financial transactions and infrastructure projects that carry risks of regulatory investigations and lawsuits. D&O insurance helps to cover related legal costs and damages if claims arise against a company’s directors or officers. The estimated annual cost for a business in this industry is between $12,000-$15,000, with pricing determined based on factors like annual revenue, number of employees, claims history, and coverage limits selected.

Category	List
Benefits	Protect directors and officers from personal financial liability in the event of a lawsuit Covers legal fees incurred while defending against an employment practices claim Covers legal costs associated with SEC investigations and shareholder disputes Protects company assets if directors and officers are sued personally rather than the company Covers costs incurred from regulatory investigations and actions
Use Cases	Protection against claims of breach of fiduciary duty by directors and officers Protection against shareholder derivative lawsuits alleging financial damage to the company Protection from costs associated with defending criminal or administrative investigations or proceedings Coverage for indemnification of directors and officers if the company is unable to do so Protection for executive employment practices liability claims such as wrongful termination or discrimination

Category

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Benefits

Protect directors and officers from personal financial liability in the event of a lawsuit
Covers legal fees incurred while defending against an employment practices claim
Covers legal costs associated with SEC investigations and shareholder disputes
Protects company assets if directors and officers are sued personally rather than the company
Covers costs incurred from regulatory investigations and actions

Use Cases

Protection against claims of breach of fiduciary duty by directors and officers
Protection against shareholder derivative lawsuits alleging financial damage to the company
Protection from costs associated with defending criminal or administrative investigations or proceedings
Coverage for indemnification of directors and officers if the company is unable to do so
Protection for executive employment practices liability claims such as wrongful termination or discrimination

Based on industry research and statistics, the estimated average annual pricing for Directors And Officers Insurance for businesses in the Other Heavy and Civil Engineering Construction industry with NAICS Code 237990 is $12,000-$15,000. This pricing is derived from typical rates charged for businesses in this industry considering factors like annual revenue, number of employees, claims history, and level of coverage limits selected.

Estimated Pricing: $12,000-$15,000

Conclusion

Investing in the right business insurance portfolio is crucial for heavy construction companies due to inherent risks of the work. Follow this guide to understand which insurance policies best suit your business needs based on your operations, assets, vehicles used and employees.

Top Business Insurance Types for Heavy Construction Companies with NAICS Code 237990

Key Takeaways

Introduction

General Liability Insurance

Commercial Property Insurance

Business Automobile Insurance

Workers’ Compensation Insurance

Commercial Umbrella Insurance

Commercial Cyber Liability Insurance

Commercial Environmental Insurance

Professional Liability Insurance

Directors And Officers Insurance

Conclusion

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