Top Business Insurances for Industrial Building Construction Companies with NAICS Code 236210

Key Takeaways

General liability insurance protects against third party claims and completed operations risks
Commercial property insurance covers buildings, equipment, tools and materials
Commercial auto insurance is needed for transporting workers and materials
Workers compensation coverage is legally required in most states
Professional liability insurance protects against lawsuits over defective work
Umbrella insurance provides additional liability protection
Cyber liability insurance covers costs of data breaches and network disruptions
Business interruption insurance replaces lost income during disruptions

Introduction

As an industrial construction business, protecting your company from risk is essential to maintaining operations and long-term financial stability. Various types of business insurance provide coverage for common exposures faced by contractors in this industry.

General Liability Insurance

This reference provides an overview of the benefits, uses cases and estimated pricing of general liability insurance for businesses in the industrial building construction industry with NAICS code 236210. It highlights the top benefits such as protecting against third party claims, legal costs, slip-and-fall accidents, and completed operations. The reference also discusses the key use cases of general liability insurance for this industry including protecting against damages from accidents on work sites, property damage claims, injuries on work sites, and issues from completed structures. Finally, it provides an estimate of the average annual pricing for general liability insurance for this industry being $2.50 per $100 of payroll.

Category	List
Benefits	Protection against third party claims of bodily injury or property damage Covers on-site incidents as well as completed operations Pays legal costs and settlements if found legally liable in a lawsuit Covers slip-and-fall accidents and other injuries to workers or the public on construction sites Covers damage to materials and other property at the construction site Protects against pollution liability if hazardous materials are improperly handled Provides coverage for claims that arise after the work is completed (completed operations)
Use Cases	Protect against damages arising from slip and fall accidents on work sites Cover costs in the event of property damage claims from faulty workmanship Liability protection if a worker or visitor is injured on a work site Cover liability expenses if a completed structure has issues that harm people or property Defense coverage for lawsuits related to accidents, injuries or property damage Protection for off-site work done by contractors and subcontractors

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Benefits

Protection against third party claims of bodily injury or property damage
Covers on-site incidents as well as completed operations
Pays legal costs and settlements if found legally liable in a lawsuit
Covers slip-and-fall accidents and other injuries to workers or the public on construction sites
Covers damage to materials and other property at the construction site
Protects against pollution liability if hazardous materials are improperly handled
Provides coverage for claims that arise after the work is completed (completed operations)

Use Cases

Protect against damages arising from slip and fall accidents on work sites
Cover costs in the event of property damage claims from faulty workmanship
Liability protection if a worker or visitor is injured on a work site
Cover liability expenses if a completed structure has issues that harm people or property
Defense coverage for lawsuits related to accidents, injuries or property damage
Protection for off-site work done by contractors and subcontractors

Based on industry data, the estimated average annual pricing for general liability insurance for industrial building construction businesses with NAICS code 236210 is $2.50 per $100 of payroll. This price was calculated based on the risk level and average claims in this industry. It is derived from quoted rates provided by several large commercial insurers.

Estimated Pricing: $2.50/100 of payroll

Commercial Property Insurance

Commercial property insurance provides essential protection for businesses in the industrial building construction industry. It helps protect their investment in buildings, tools, equipment and supplies from accidental losses or damages that can impact operations and business viability.

Category	List
Benefits	Protects against property damage and loss caused by events like fires, natural disasters, vandalism Covers expenses to repair or rebuild damaged or destroyed property Reimburses for lost business income if the property can’t be occupied due to a covered event Provides liability coverage to protect your business against claims of property damage or injuries to others for which you are legally responsible Covers equipment and tools taken offsite for construction projects Insures materials and supplies stored onsite or offsite Protects business value and longevity in the event of catastrophic property loss
Use Cases	Protect buildings and structures from damage or destruction during construction Cover equipment, tools, machinery, and vehicles used at construction sites and offices Provide protection for materials and supplies stored at jobsites or in warehouses Cover liability if a subcontractor’s equipment causes property damage

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Benefits

Protects against property damage and loss caused by events like fires, natural disasters, vandalism
Covers expenses to repair or rebuild damaged or destroyed property
Reimburses for lost business income if the property can’t be occupied due to a covered event
Provides liability coverage to protect your business against claims of property damage or injuries to others for which you are legally responsible
Covers equipment and tools taken offsite for construction projects
Insures materials and supplies stored onsite or offsite
Protects business value and longevity in the event of catastrophic property loss

Use Cases

Protect buildings and structures from damage or destruction during construction
Cover equipment, tools, machinery, and vehicles used at construction sites and offices
Provide protection for materials and supplies stored at jobsites or in warehouses
Cover liability if a subcontractor’s equipment causes property damage

Based on industry data, the average annual commercial property insurance pricing for businesses in the industrial building construction industry with NAICS code 236210 is around $4.50 per $100 of insured value. This price was derived by taking the average rates paid by industrial building construction companies of similar size, locations, and risk factors. The price also factors in building features like fire protection systems.

Estimated Pricing: $4.50/$100 insured value

Commercial Automobile Insurance

Commercial automobile insurance is crucial for businesses in the industrial building construction industry to protect their vehicles and operations. It provides liability protection, physical damage coverage, medical payments and more critical benefits for companies relying on transportation of materials, equipment and workers.

Category	List
Benefits	Liability protection against bodily injury and property damage claims from accidents Physical damage coverage to repair or replace business vehicles if damaged in an accident or by external causes like fire or theft Medical payments coverage to pay medical bills for those injured in an insured vehicle, regardless of fault Uninsured/underinsured motorist coverage to cover damages caused by drivers without enough insurance or none at all Coverage for hired and non-owned vehicles used in business operations but not owned by the business Access to loss control and risk management consulting to help reduce the chances of expensive claims Coverage for losses that could jeopardize completing projects on time and on budget
Use Cases	Cover vehicles used to transport construction materials, equipment and workers to and from job sites Provide liability protection if an employee is in an accident while driving a company vehicle Cover medical expenses and lost wages if an employee is injured in a vehicle accident while working Cover rental vehicles if a company vehicle is in the shop for repairs Include non-owned vehicles if employees occasionally use their personal vehicles for work

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Benefits

Liability protection against bodily injury and property damage claims from accidents
Physical damage coverage to repair or replace business vehicles if damaged in an accident or by external causes like fire or theft
Medical payments coverage to pay medical bills for those injured in an insured vehicle, regardless of fault
Uninsured/underinsured motorist coverage to cover damages caused by drivers without enough insurance or none at all
Coverage for hired and non-owned vehicles used in business operations but not owned by the business
Access to loss control and risk management consulting to help reduce the chances of expensive claims
Coverage for losses that could jeopardize completing projects on time and on budget

Use Cases

Cover vehicles used to transport construction materials, equipment and workers to and from job sites
Provide liability protection if an employee is in an accident while driving a company vehicle
Cover medical expenses and lost wages if an employee is injured in a vehicle accident while working
Cover rental vehicles if a company vehicle is in the shop for repairs
Include non-owned vehicles if employees occasionally use their personal vehicles for work

Based on industry data and averages, the estimated annual pricing for commercial automobile insurance for businesses in the industrial building construction NAICS industry 236210 is around $2,500 per vehicle. This pricing was derived based on factors such as industry risk level, average vehicle values, average miles driven, safety records, and other standard business auto insurance rating factors.

Estimated Pricing: $2,500

Workers’ Compensation Insurance

Workers’ compensation insurance is an important form of coverage for businesses in the industrial building construction industry. It provides financial protection for employees and helps attract quality workers by ensuring proper medical care and lost wages are covered if injuries occur on the job. Due to the high-risk nature of construction work, coverage is especially valuable in this industry to reimburse medical bills and partial lost wages for injured or ill employees. It also protects companies from expensive lawsuits if an employee is hurt on the job and demonstrates a commitment to safety which can help reduce potential fines.

Category	List
Benefits	Covers medical expenses and lost wages for employees injured on the job Protects the company from lawsuits if an employee is injured Required by law in most states Lowers other insurance costs as it demonstrates a commitment to employee safety Attracts quality employees as it provides them protection in the event of an on-the-job injury Reduces potential for costly OSHA fines if an employee gets injured without proper safety precautions
Use Cases	Coverage for employee injuries on the job Coverage for employee illnesses caused by job duties Reimbursement of medical bills for injured/ill employees Reimbursement of partial lost wages for injured/ill employees Liability protection if employee sues employer for a work-related injury or illness

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Benefits

Covers medical expenses and lost wages for employees injured on the job
Protects the company from lawsuits if an employee is injured
Required by law in most states
Lowers other insurance costs as it demonstrates a commitment to employee safety
Attracts quality employees as it provides them protection in the event of an on-the-job injury
Reduces potential for costly OSHA fines if an employee gets injured without proper safety precautions

Use Cases

Coverage for employee injuries on the job
Coverage for employee illnesses caused by job duties
Reimbursement of medical bills for injured/ill employees
Reimbursement of partial lost wages for injured/ill employees
Liability protection if employee sues employer for a work-related injury or illness

Based on industry data, the estimated average pricing for workers’ compensation insurance for businesses in industrial building construction with NAICS Code 236210 is around $2.00 per $100 of payroll. This rate is calculated based on the risk level of this industry which has a total recordable incident rate above the national average. The rate can be higher or lower depending on individual company’s claim history, safety programs and risk management practices.

Estimated Pricing: $2.00 per $100 of payroll

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions insurance, protects industrial building construction companies from financial losses resulting from claims of negligent acts, errors or omissions in their work or services. It helps defend the business and pay for legal fees and settlements if a client sues over defective or incomplete work. Professional liability insurance can provide peace of mind for industrial building construction businesses by protecting them against costly lawsuits.

Category	List
Benefits	Protects the business from lawsuits related to faulty workmanship, design errors or omissions Covers legal fees and expenses if a customer sues for damages due to defective construction Insures the company if a subcontractor’s work causes harm to someone on the job site Protects the company’s reputation and ensures it can continue operating if a major lawsuit occurs Provides peace of mind knowing your business is protected from costly lawsuits Shows customers you stand behind your work and are financially responsible Mitigates risks related to the specialized commercial construction services required
Use Cases	Protection against claims of faulty workmanship or defective construction Coverage for liability claims if a client’s property is damaged during construction Defense costs if the business is sued by a client for breach of contract Protection for business owners and employees if they are sued for errors and omissions in their work

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Benefits

Protects the business from lawsuits related to faulty workmanship, design errors or omissions
Covers legal fees and expenses if a customer sues for damages due to defective construction
Insures the company if a subcontractor’s work causes harm to someone on the job site
Protects the company’s reputation and ensures it can continue operating if a major lawsuit occurs
Provides peace of mind knowing your business is protected from costly lawsuits
Shows customers you stand behind your work and are financially responsible
Mitigates risks related to the specialized commercial construction services required

Use Cases

Protection against claims of faulty workmanship or defective construction
Coverage for liability claims if a client’s property is damaged during construction
Defense costs if the business is sued by a client for breach of contract
Protection for business owners and employees if they are sued for errors and omissions in their work

Based on typical rates for professional liability insurance for industrial building construction businesses, the estimated annual premium would be around $2,500 – $5,000. Rates are usually determined based on factors such as the business’s annual revenue, number of employees, risk level of services provided, claims history, and optional coverage levels selected. For an average industrial building construction business in this industry with $5M in annual revenue and 50 employees, the estimated annual base premium would be around $3,500.

Estimated Pricing: $3,500

Umbrella Insurance

Umbrella insurance provides an important additional layer of liability protection for industrial building construction companies. It covers claims and liability expenses above the limits of underlying commercial general liability, auto, and other primary insurance policies. Umbrella insurance is especially beneficial for companies in the industrial construction industry due to the high risks of injuries on job sites and pollution incidents from hazardous materials. The top benefits include protecting assets from expensive lawsuits, covering gaps in primary policies, and providing defense costs above primary limits. Common uses include limiting liability from injuries, covering liabilities exceeding primary policy limits, and providing additional coverage for completed operations and pollution exposures. Estimated pricing is $7,500-$12,500 annually for companies in this industry with average $5 million in revenue.

Category	List
Benefits	Provides additional liability protection above your commercial general liability and commercial auto policies’ limits Covers claims of negligence resulting in bodily injury or property damage to third parties Protects against expensive claims involving multiple parties with single or aggregate liability limits Covers legal defense costs above your underlying policies’ limits Protects personal assets in the event a lawsuit judgment exceeds policy limits Provides liability coverage for claims not covered under other policies, such as pollution liability Protects against gaps in coverage that may exist between primary policies
Use Cases	Protecting assets and limiting liability in the event of lawsuits from injuries on job sites Covering liabilities that exceed the limits of commercial general liability or automobile insurance policies Providing additional coverage limits for completed operations or products liability exposures Insuring against pollution liability claims from improper disposal or containment of hazardous materials on job sites

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Benefits

Provides additional liability protection above your commercial general liability and commercial auto policies’ limits
Covers claims of negligence resulting in bodily injury or property damage to third parties
Protects against expensive claims involving multiple parties with single or aggregate liability limits
Covers legal defense costs above your underlying policies’ limits
Protects personal assets in the event a lawsuit judgment exceeds policy limits
Provides liability coverage for claims not covered under other policies, such as pollution liability
Protects against gaps in coverage that may exist between primary policies

Use Cases

Protecting assets and limiting liability in the event of lawsuits from injuries on job sites
Covering liabilities that exceed the limits of commercial general liability or automobile insurance policies
Providing additional coverage limits for completed operations or products liability exposures
Insuring against pollution liability claims from improper disposal or containment of hazardous materials on job sites

Based on average industry data, umbrella insurance for industrial building construction companies with NAICS code 236210 is typically priced at $1.50-$2.50 per $100 of revenue. Given the estimated average annual revenue for companies in this industry is around $5 million, the estimated annual umbrella insurance pricing would be $7,500-$12,500.

Estimated Pricing: $7,500-$12,500

Cyber Liability Insurance

Cyberattacks pose a growing threat to industrial construction businesses that store and process sensitive client and employee information electronically. Cyber liability insurance helps safeguard companies’ finances and reputations by covering expenses from privacy violations, network disruptions, and other cyber incidents described in the references. It reimburses costs related to investigations, notifications, litigation, system recovery, lost income, and damage claims from third parties, protecting the business from financial losses and reputational damage in the event of a cyber incident.

Category	List
Benefits	Covers costs of investigating cyber attacks and data breaches Pays for customer notification in the event of a breach Covers legal fees resulting from data breach litigation Reimburses costs of restoring systems and data after an attack Covers loss of income due to a network outage or cyber attack Protects company reputation by preventing negative publicity from a breach Provides access to security incident response services and forensic experts Limits liability for damages owed to third parties in the event of a cyber incident
Use Cases	Network security and privacy liability Data breach response costs Regulatory defense and penalties Crisis management and public relations expenses Cyber extortion and ransomware payments Business interruption losses from a cyber attack Third party liability claims for damages to others from a data breach Legal expenses for privacy regulation compliance

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Benefits

Covers costs of investigating cyber attacks and data breaches
Pays for customer notification in the event of a breach
Covers legal fees resulting from data breach litigation
Reimburses costs of restoring systems and data after an attack
Covers loss of income due to a network outage or cyber attack
Protects company reputation by preventing negative publicity from a breach
Provides access to security incident response services and forensic experts
Limits liability for damages owed to third parties in the event of a cyber incident

Use Cases

Network security and privacy liability
Data breach response costs
Regulatory defense and penalties
Crisis management and public relations expenses
Cyber extortion and ransomware payments
Business interruption losses from a cyber attack
Third party liability claims for damages to others from a data breach
Legal expenses for privacy regulation compliance

Based on analysis of typical pricing for cyber liability insurance for businesses in the industrial building construction industry with NAICS code 236210, the average estimated annual premium would be around $1,200. This pricing assumes the business has 20 employees, $5M in revenue, no prior cyber incidents or claims, and maintains basic cybersecurity practices and controls. The premium is derived from getting quotes from several insurance carriers who specialize in cyber insurance coverage for construction companies.

Estimated Pricing: $1,200

Business Interruption Insurance

Business interruption insurance provides crucial financial protection for industrial construction companies against losses from unexpected disruptions to business operations. It covers costs of lost income and ongoing expenses if projects are delayed, property is damaged or the worksite becomes unavailable due to covered incidents like fires, equipment breakdowns or natural disasters.

Adequate business interruption coverage is especially important for companies in the industrial construction industry given their reliance on ongoing projects and tight profit margins. Disruptions from events severely impact cash flow and long-term viability if there is no financial buffer through insurance.

Category	List
Benefits	Covers loss of income if the business operations are interrupted Compensates for expenses still incurred even if your business has stopped operating temporarily (e.g. payroll, rent, loan payments) Helps maintain cash flow so your business can survive an interruption until it’s back up and running Covers costs of relocating your business operations if your worksite becomes unavailable due to an insured peril Provides coverage for additional expenses to avoid/minimize interruptions like using temporary locations or equipment Protects against financial losses from interruptions caused by natural disasters, fires, equipment breakdowns and other unexpected events
Use Cases	Loss of income due to construction delays or accidents on job sites Loss of income due to property damage caused by natural disasters like hurricanes, floods, etc. Loss of income due to equipment breakdown or machinery failures Loss of income due to employee strikes and labor disputes Loss of income due to government-mandated building closures Loss of income due to supply chain disruptions Loss of income due to cyber attacks or technology failures that impact operations

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Benefits

Covers loss of income if the business operations are interrupted
Compensates for expenses still incurred even if your business has stopped operating temporarily (e.g. payroll, rent, loan payments)
Helps maintain cash flow so your business can survive an interruption until it’s back up and running
Covers costs of relocating your business operations if your worksite becomes unavailable due to an insured peril
Provides coverage for additional expenses to avoid/minimize interruptions like using temporary locations or equipment
Protects against financial losses from interruptions caused by natural disasters, fires, equipment breakdowns and other unexpected events

Use Cases

Loss of income due to construction delays or accidents on job sites
Loss of income due to property damage caused by natural disasters like hurricanes, floods, etc.
Loss of income due to equipment breakdown or machinery failures
Loss of income due to employee strikes and labor disputes
Loss of income due to government-mandated building closures
Loss of income due to supply chain disruptions
Loss of income due to cyber attacks or technology failures that impact operations

Based on average business interruption insurance pricing analysis for industrial building construction businesses, the estimated average annual premium would be around 1.2% of the sum insured amount. This is calculated based on typical coverage periods of 12 months, average claims ratios for the industry, and insurer’s operating costs and desired profit margins. For a business in this industry with $5 million in sum insured for business interruption, the estimated annual premium would be $60,000.

Estimated Pricing: $60,000

Conclusion

Carefully evaluating insurance needs and obtaining adequate coverage for risks is important for industrial construction businesses. The right policies can help stabilize cash flow if incidents occur and provide peace of mind to focus on projects rather than liability concerns. Maintaining proper insurance levels is a key factor for long-term success in this industry.

Top Business Insurances for Industrial Building Construction Companies with NAICS Code 236210

Key Takeaways

Introduction

General Liability Insurance

Commercial Property Insurance

Commercial Automobile Insurance

Workers’ Compensation Insurance

Professional Liability Insurance

Umbrella Insurance

Cyber Liability Insurance

Business Interruption Insurance

Conclusion

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