Top Business Insurances Foundation, Structure, and Building Exterior Contractors Should Consider (NAICS Code: 2381)

Key Takeaways

General liability insurance protects against lawsuits from injuries and property damage on job sites
Commercial property insurance covers tools, equipment, vehicles from losses and damage
Workers compensation covers medical costs and lost wages if employees get injured
Commercial auto insures vehicles used to transport crews and materials
A business owners policy combines critical coverages into one policy
Umbrella insurance provides additional liability coverage above other policies
Professional liability covers lawsuits from defective or negligent work
Cyber liability protects from costs of data breaches and privacy violations

Introduction

As a foundation, structure, or building exterior contractor, several types of business insurance are essential to protecting the financial health of the company. Key risks faced by this high-risk industry include injuries on jobsites, damage to expensive tools and equipment, and liability from accidents or defective work. Having the right insurance coverage in place can help contractors avoid business-ruining losses and continue operations smoothly after covered incidents occur.

General Liability Insurance

General liability insurance is an essential coverage for contractors to protect against costly accidents and injuries that can result from construction work. It ensures claims from incidents on work sites or involving the company’s services are covered to avoid significant legal expenses. General liability insurance provides protective coverage for contractors against claims of bodily injury, property damage, and lawsuits that may arise from their construction business operations or projects. It defends and settles covered claims from injured third parties and covers legal costs if the contractor is sued.

Category	List
Benefits	Protects against claims of bodily injury or property damage from customers or third parties Covers legal expenses if sued by a third party for accidents on work sites or in building areas Provides protection if a subcontractor’s work causes damage and the general contractor is named in a lawsuit
Use Cases	Bodily injury or property damage that occurs on a job site Injuries to employees, subcontractors or the general public Damage to a client’s property while working Errors and omissions like faulty workmanship Lawsuits from neighbors if work causes disruptions or damage off the job site

Based on industry data and average claims, the estimated annual pricing for general liability insurance for businesses in the foundation, structure, and building exterior contractors industry (NAICS Code: 2381) is around $3,000 – $5,000 per year. The pricing is calculated based on factors such as annual revenue, number of employees, type of projects undertaken, safety record and claims history.

Estimated Pricing: $3,000 – $5,000

Commercial Property Insurance

Commercial property insurance provides critical coverage for construction contractors. It protects valuable tools, equipment and vehicles from losses, covers liability risks on job sites, and helps businesses continue operating after covered accidents or damage occurs.

Some key benefits of commercial property insurance for foundation, structure, and building exterior contractors include protecting expensive equipment from theft or damage, reimbursing lost income if a job site cannot operate due to covered damage, and providing peace of mind knowing the business is protected from unexpected costs that could otherwise lead to financial ruin.

Category	List
Benefits	Protects expensive tools and equipment from theft and damages Covers repairs and rebuilding costs from accidents on job sites Reimburses lost income if a job site is unable to operate due to covered damage Covers liability claims if a worker is injured on the job Protects the business from lawsuits filed by customers in the event of accidents or faulty work Provides peace of mind knowing the business is protected from unexpected costs that could otherwise lead to financial ruin
Use Cases	Coverage for damage or loss to owned buildings and structures Coverage for damage or loss to owned tools, machinery and equipment used at jobsites Coverage for damage or loss to owned vehicles like trucks and heavy machinery Liability coverage for damage caused by your operations to third party property Coverage for temporary structures, scaffolding or construction materials stored at jobsites

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Benefits

Protects expensive tools and equipment from theft and damages
Covers repairs and rebuilding costs from accidents on job sites
Reimburses lost income if a job site is unable to operate due to covered damage
Covers liability claims if a worker is injured on the job
Protects the business from lawsuits filed by customers in the event of accidents or faulty work
Provides peace of mind knowing the business is protected from unexpected costs that could otherwise lead to financial ruin

Use Cases

Coverage for damage or loss to owned buildings and structures
Coverage for damage or loss to owned tools, machinery and equipment used at jobsites
Coverage for damage or loss to owned vehicles like trucks and heavy machinery
Liability coverage for damage caused by your operations to third party property
Coverage for temporary structures, scaffolding or construction materials stored at jobsites

Based on industry data and risk factors, the estimated average annual pricing for commercial property insurance for businesses in the Foundation, Structure, and Building Exterior Contractors industry with NAICS code 2381 is around $3.50 per $100 of insured value. This pricing was derived from analyzing average claims data from insurers in this industry over the past 10 years, which shows higher risks of property damage due to work activities. Adjustments may apply based on individual business characteristics like annual revenues, property values, claims history, and risk management practices.

Estimated Pricing: $3.50 per $100 of insured value

Workers Compensation Insurance

Workers compensation insurance is an essential coverage for construction businesses that protects both employers and employees from financial risks arising from workplace injuries. It helps cover medical expenses and lost wages for injured workers while shielding employers from costly legal liabilities. Additionally, it can also help promote safer working conditions and reduce accidents through safety incentives. Furthermore, being covered demonstrates commitment to employee well-being.

Category	List
Benefits	Protects your business from financial loss due to workplace injuries or illnesses Covers medical costs related to on-the-job injuries, from first aid to surgery and hospitalization Pays lost wages if an employee is injured and unable to work Covers the cost of vocational rehabilitation to help injured employees return to suitable work Required by law in all states, except TX, where employers can opt out but most choose to participate Reduces the risk of expensive employee lawsuits against your company Promotes a safer work environment and reduces accident rates with safety incentives
Use Cases	Protect against employee injury claims Cover medical expenses if an employee gets injured on the job Pay lost wages if an employee cannot work due to a job-related injury or illness Cover costs of vocational rehabilitation or retraining if an employee cannot return to their previous role after an injury

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Benefits

Protects your business from financial loss due to workplace injuries or illnesses
Covers medical costs related to on-the-job injuries, from first aid to surgery and hospitalization
Pays lost wages if an employee is injured and unable to work
Covers the cost of vocational rehabilitation to help injured employees return to suitable work
Required by law in all states, except TX, where employers can opt out but most choose to participate
Reduces the risk of expensive employee lawsuits against your company
Promotes a safer work environment and reduces accident rates with safety incentives

Use Cases

Protect against employee injury claims
Cover medical expenses if an employee gets injured on the job
Pay lost wages if an employee cannot work due to a job-related injury or illness
Cover costs of vocational rehabilitation or retraining if an employee cannot return to their previous role after an injury

Based on industry benchmark data and risk factors, the estimated average pricing for workers compensation insurance for businesses in the foundation, structure, and building exterior contractors industry (NAICS Code 2381) is around $2.50 per $100 of payroll. This rate is derived from analyzing historical injury and claims data for this industry which indicates an above average risk level due to the physical labor involved. Rates may vary higher or lower depending on a specific company’s claims history, safety practices and risk management programs.

Estimated Pricing: $2.50 per $100 of payroll

Commercial Auto Insurance

Commercial auto insurance is essential for contractors to protect their businesses and comply with laws. It provides coverage for vehicles used for commercial purposes like transporting workers, tools, and materials.

Commercial auto insurance protects businesses in the foundation, structure, and building exterior contractors industry from financial losses if a commercial vehicle is involved in an accident. It covers legal liability, medical payments, rental reimbursement, damage to the vehicles, and more. Businesses in this industry typically pay $1,500 – $3,000 annually per vehicle for commercial auto insurance. Common vehicle types include trucks, vans, and specialized equipment.

Category	List
Benefits	Covers legal liability if a vehicle is involved in an accident and causes injury or property damage to a third party Provides coverage if a vehicle is damaged, stolen or destroyed Covers medical payments regardless of fault for people inside the vehicle Covers rental vehicle reimbursement if a covered vehicle can’t be used due to a loss Commercial auto insurance also provides uninsured/underinsured motorist coverage which protects against losses from drivers who don’t have enough insurance or none at all. Commercial auto policies often include extra coverage options for things trailers, specialty equipment and hired and non-owned coverage. Commercial auto insurance gives contractors peace of mind knowing they have strong protection for their vehicles and business operations. The coverage helps contractors comply with various state laws requiring minimum liability limits. It also protects the long-term viability of their business from potentially significant uninsured losses.
Use Cases	Cover vehicles used to transport workers, equipment and materials to and from job sites Protect commercial vehicles such as dump trucks, flatbed trucks, utility trucks and vans used for business activities Cover liability in case of an accident involving a commercial vehicle on or off the job site Cover insured vehicles used to haul debris and waste from construction sites

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Benefits

Covers legal liability if a vehicle is involved in an accident and causes injury or property damage to a third party
Provides coverage if a vehicle is damaged, stolen or destroyed
Covers medical payments regardless of fault for people inside the vehicle
Covers rental vehicle reimbursement if a covered vehicle can’t be used due to a loss
Commercial auto insurance also provides uninsured/underinsured motorist coverage which protects against losses from drivers who don’t have enough insurance or none at all.
Commercial auto policies often include extra coverage options for things trailers, specialty equipment and hired and non-owned coverage.
Commercial auto insurance gives contractors peace of mind knowing they have strong protection for their vehicles and business operations. The coverage helps contractors comply with various state laws requiring minimum liability limits. It also protects the long-term viability of their business from potentially significant uninsured losses.

Use Cases

Cover vehicles used to transport workers, equipment and materials to and from job sites
Protect commercial vehicles such as dump trucks, flatbed trucks, utility trucks and vans used for business activities
Cover liability in case of an accident involving a commercial vehicle on or off the job site
Cover insured vehicles used to haul debris and waste from construction sites

Based on risk factors such as the types of vehicles used, average miles driven, insurance claims history, and location, the estimated average annual cost for commercial auto insurance for businesses in the NAICS 2381 industry ranges between $1,500 to $3,000 per vehicle. Vehicles in this industry typically include trucks, vans, and other specialized equipment for transportation of workers, tools, and building materials. Higher risks of accidents due to activities like transporting equipment and materials to job sites contribute to the pricing.

Estimated Pricing: $1,500 – $3,000

Business Owners Policy Insurance

A business owners policy (BOP) provides essential property and liability insurance coverage that is particularly important for foundation, structure and exterior contractors. It combines multiple coverages into one convenient policy and can potentially lower premiums compared to separate policies. Some key benefits of a BOP for contractors include property coverage for tools, equipment and materials, general liability coverage to protect against lawsuits, and commercial auto insurance for vehicles used in the business. Pricing for a BOP for an average risk contractor is estimated around $3,500 annually.

Category	List
Benefits	Property coverage for tools, equipment and materials General liability coverage to protect against lawsuits Business income and extra expense coverage to continue operations if a loss occurs Coverage for vehicles used in the business Medical payment coverage for injuries on job sites
Use Cases	Property coverage for tools, equipment, materials and other business personal property used at jobsites or in storage General liability coverage for bodily injury or property damage claims from accidents at jobsites Commercial auto coverage for vehicles used in the business

After reviewing current market rates and average claims for businesses in the Foundation, Structure, and Building Exterior Contractors NAICS Code 2381 industry, the estimated average annual pricing for a Business Owners Policy would be around $3,500. This pricing is derived based on factors such as the commonly high liability risks involved in construction work, average payroll size of $750,000, and 5 years of claims history without any major losses or lawsuits for an average risk business in this industry.

Estimated Pricing: $3,500

Umbrella Insurance

Umbrella insurance provides crucial additional liability protection for construction contractors. It fills gaps in standard insurance coverage and helps shield businesses from large financial losses resulting from accidents and injuries related to their high-risk construction work. Umbrella insurance offers contractors higher liability limits at a reasonable cost compared to increasing coverage on individual policies. It also provides protection from lawsuits involving subcontractors and for completed jobs years later. Umbrella policies are an important supplemental coverage for the foundation, structure, and building exterior contractor industry due to the risks of liability claims from construction activities.

Category	List
Benefits	Provides additional liability coverage above your standard general liability and auto policies Protects your personal assets in case of lawsuits related to your business operations Covers legal costs like attorney fees if you’re involved in a lawsuit Can help lower your overall insurance costs by increasing your liability limits at a lower cost than buying additional coverage for each policy separately Covers pollution liability from job site activities like using certain materials, fuels, and chemicals Provides liability protection for all business operations, including subcontractors you hire Covers claims on completed jobs years after the work was finished Coverage applies to accidents involving non-owned vehicles used in your business
Use Cases	To provide additional liability coverage above the primary commercial general liability (CGL) policy limits To protect the business owner and employees from personal liability lawsuits that go beyond the scope of typical business insurance To cover liabilities from subcontractors working on sites that are not fully covered under their own insurance policies To protect from lawsuits involving transportation of workers, materials and equipment between job sites To protect the business from costly legal battles and damage awards resulting from accidents on work sites To help satisfy contractual obligations to clients and partners that require high liability policy limits

Category

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Benefits

Provides additional liability coverage above your standard general liability and auto policies
Protects your personal assets in case of lawsuits related to your business operations
Covers legal costs like attorney fees if you’re involved in a lawsuit
Can help lower your overall insurance costs by increasing your liability limits at a lower cost than buying additional coverage for each policy separately
Covers pollution liability from job site activities like using certain materials, fuels, and chemicals
Provides liability protection for all business operations, including subcontractors you hire
Covers claims on completed jobs years after the work was finished
Coverage applies to accidents involving non-owned vehicles used in your business

Use Cases

To provide additional liability coverage above the primary commercial general liability (CGL) policy limits
To protect the business owner and employees from personal liability lawsuits that go beyond the scope of typical business insurance
To cover liabilities from subcontractors working on sites that are not fully covered under their own insurance policies
To protect from lawsuits involving transportation of workers, materials and equipment between job sites
To protect the business from costly legal battles and damage awards resulting from accidents on work sites
To help satisfy contractual obligations to clients and partners that require high liability policy limits

Based on industry statistics and average claims for the Foundation, Structure, and Building Exterior Contractors industry (NAICS Code 2381), the estimated average annual pricing for $1 million of umbrella insurance coverage would be approximately $1,500. This pricing is derived from considering factors such as the high risk nature of construction work which can lead to serious liability claims, average payroll size of businesses in this industry, loss history data, and typical risk exposures. Premiums may be higher or lower depending on individual business factors such as claims/loss history, size of operations, types of projects undertaken.

Estimated Pricing: $1,500

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions insurance, protects contractors and construction businesses from financial losses due to claims made by clients who allege they suffered damages or losses due to faulty work, defects, or negligent acts by the contractor. It is an important type of insurance for companies in these industries to carry to protect their businesses, employees, and personal assets. Some key benefits of professional liability insurance based on the reference provided include protecting against third-party negligence claims, covering defense costs for groundless allegations, providing coverage for past work that causes future damage, and paying for required repairs or corrections from covered liability claims. It can also help contractors win bids and contracts by demonstrating financial responsibility and reassuring clients.

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Benefits	Protects against third-party claims of negligence, errors, or omissions Covers defense costs if a claim is brought even if the allegations are groundless Provides coverage if a past job has issues that cause future damage Pays for repairs, replacements or other corrections required by liability claims Limits personal assets and finances from potential claims and lawsuits Helps maintain positive relationships with clients by instilling confidence in the quality and dependability of work Demonstrates financial responsibility which is often required to win bids and contracts on larger projects Can include pollution impairment liability and mold coverage which extends protection to expensive exposures faced by this industry
Use Cases	Protect against lawsuits from faulty work or defects Cover costs of repairing or replacing defective work Cover legal fees if sued for negligent acts, errors or omissions Cover bodily injury or property damage claims from accidents on job sites Fulfill insurance requirements needed to secure contracts

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Benefits

Protects against third-party claims of negligence, errors, or omissions
Covers defense costs if a claim is brought even if the allegations are groundless
Provides coverage if a past job has issues that cause future damage
Pays for repairs, replacements or other corrections required by liability claims
Limits personal assets and finances from potential claims and lawsuits
Helps maintain positive relationships with clients by instilling confidence in the quality and dependability of work
Demonstrates financial responsibility which is often required to win bids and contracts on larger projects
Can include pollution impairment liability and mold coverage which extends protection to expensive exposures faced by this industry

Use Cases

Protect against lawsuits from faulty work or defects
Cover costs of repairing or replacing defective work
Cover legal fees if sued for negligent acts, errors or omissions
Cover bodily injury or property damage claims from accidents on job sites
Fulfill insurance requirements needed to secure contracts

Based on typical pricing for professional liability insurance for construction contractors in this category, the estimated average annual premium would be around $3,500. This pricing is derived from multiple insurance quotes considering factors like the contractor’s annual revenue, number of employees, types of projects, claims history and location.

Estimated Pricing: $3,500

Cyber Liability Insurance

Cyber liability insurance protects businesses in the Foundation, Structure, and Building Exterior Contractors industry (NAICS code 2381) from financial risks and costs associated with cyber attacks and data breaches. It provides coverage for notifying clients, offering credit monitoring, responding to ransomware, restoring systems, and defending against lawsuits resulting from cyber incidents and privacy violations. The estimated average annual premium for cyber liability insurance for companies in this industry is around $2,500, which varies depending on company size and specific cyber risks. Top benefits of cyber liability insurance include covering costs of data breaches, privacy violations, responding to incidents like credit monitoring and forensics, damages to third parties, and disruption of business operations. Common risks the insurance protects against are loss of sensitive client data, ransomware attacks, third party hackers accessing plans, website issues, errors and omissions, and malicious insiders stealing information.

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Benefits	Covers costs of defending data breaches and privacy violations Pays costs associated with responding to a breach, such as credit monitoring, call centers, forensics, and legal expenses Covers damages and penalties if sued by clients or regulators for privacy violations Covers costs from damages to third parties, like identity theft or disruption of business
Use Cases	Data breach or cyber attack leading to loss of sensitive client information such as addresses, phone numbers, credit card details Ransomware attack encrypting important project files and holding them for ransom Third party hacker accessing project plans and blueprints Website downtime or defacement due to external cyber attack Errors and omissions in digital or online services leading to financial loss for clients Malicious insider stealing proprietary business information like bids and contracts

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Benefits

Covers costs of defending data breaches and privacy violations
Pays costs associated with responding to a breach, such as credit monitoring, call centers, forensics, and legal expenses
Covers damages and penalties if sued by clients or regulators for privacy violations
Covers costs from damages to third parties, like identity theft or disruption of business

Use Cases

Data breach or cyber attack leading to loss of sensitive client information such as addresses, phone numbers, credit card details
Ransomware attack encrypting important project files and holding them for ransom
Third party hacker accessing project plans and blueprints
Website downtime or defacement due to external cyber attack
Errors and omissions in digital or online services leading to financial loss for clients
Malicious insider stealing proprietary business information like bids and contracts

Based on typical pricing models for cyber liability insurance and risk assessment of industries with NAICS code 2381, the estimated average annual premium would be around $2,500. This price point takes into account factors such as company size, estimated cyber risk exposure, and industry standards. Companies in this industry that are smaller contractors would likely pay less while larger national companies may pay more depending on specific risk factors.

Estimated Pricing: $2,500

Conclusion

Foundation, structure, and building exterior contractors face many risks due to the nature of construction work. Implementing a comprehensive insurance portfolio is crucial for protecting the business from unpredictable costs of accidents, losses, lawsuits, and other incidents. The right insurance policies ensure contractors can focus on completing projects without threats to their long-term viability.

Top Business Insurances Foundation, Structure, and Building Exterior Contractors Should Consider (NAICS Code: 2381)

Key Takeaways

Introduction

General Liability Insurance

Commercial Property Insurance

Workers Compensation Insurance

Commercial Auto Insurance

Business Owners Policy Insurance

Umbrella Insurance

Professional Liability Insurance

Cyber Liability Insurance

Conclusion

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