Top Insurance Policies for Water and Sewer Line Construction Companies with NAICS Code 237110

UncategorizedReading Time: 11 minutes

An overview of the most important types of business insurance for water and sewer line construction companies classified under NAICS code 237110 including general liability, commercial auto, workers' compensation, and more.

Key Takeaways

  • General liability insurance protects against third party bodily injury and property damage claims.
  • Workers’ compensation covers medical expenses and lost wages for injured employees.
  • Commercial auto insurance provides coverage for vehicles used in the business.
  • Commercial property insurance protects valuable business equipment and property.
  • Professional liability covers lawsuits related to errors and omissions in work.

Introduction

The water and sewer line construction industry faces unique risks that require specialized insurance protections. As a contractor classified under NAICS code 237110, it is important to understand the types of coverage needed to protect both the business and its employees. This article provides an overview of the top insurance policies water and sewer line contractors should consider.

General Liability Insurance

General liability insurance is an important protection for businesses in the water and sewer line construction industry. It helps mitigate risks from accidents on work sites, construction defects, equipment issues and more that could lead to costly lawsuits and financial losses for these companies. Businesses in the water and sewer line construction industry face various risks on worksites and after projects are completed that could result in injury, property damage and legal claims. General liability insurance provides coverage to help address these exposures and protect the financial health of their operations.

Category List
Benefits
  • Protects your assets from lawsuits and legal claims if someone is hurt or their property is damaged by your operations
  • Covers legal defense costs if you’re sued
  • Provides coverage for claims that may arise long after a project is completed
  • Helps you get jobs that require proof of liability insurance
  • Protects subcontractors and clients in case an accident occurs
  • Reduces risk of financial losses that could threaten the viability of your business
  • Shows customers and clients that you take risk management seriously
  • Ensures you meet contractual obligations that require insurance coverage
Use Cases
  • Property damage from construction equipment or vehicles
  • Bodily injury to third parties on the work site
  • Pollution from construction materials, chemicals or runoff
  • faulty workmanship claims from damaged lines/structures
  • Lawsuits from traffic or community disruptions
  • Injury or illness to employees (should have workers comp instead)
  • Cost overruns or delays that harm client projects
  • Lawsuits if installed lines/structures fail and cause property damage or injuries after completion

Based on industry analysis and historical insurance pricing data, the estimated average annual premium for general liability insurance for a business in the water and sewer line and related structures construction industry with NAICS code 237110 is $12,000. This pricing is derived from considering factors such as the risk level of the industry, average payroll and revenue of businesses in this industry, and common coverage limits purchased.

Estimated Pricing: $12,000

Commercial Auto Insurance

Commercial auto insurance provides important liability and physical damage coverage for businesses that rely on vehicles. It protects companies financially in the event of accidents and reimburses costs like medical bills and vehicle repairs. Businesses in the water and sewer line construction industry in particular depend on commercial vehicles to transport specialized tools, equipment and materials to job sites. This makes commercial auto coverage especially valuable as it helps pay for costs associated with vehicles damaged while working. Estimated commercial auto insurance pricing for this industry is around $2,500-$3,500 annually per vehicle.

Category List
Benefits
  • Liability protection in case of accidents
  • Physical damage coverage for company vehicles
  • Medical payments coverage for employees injured in a covered vehicle
  • Reimbursement for vehicles damaged by other drivers
  • Coverage for equipment mounted on or within a covered vehicle
  • Hired and non-owned coverage for liability arising from vehicles not owned by the business
  • Coverage tailored specifically for transportation of specialized tools and equipment
Use Cases
  • Covering fleet vehicles like trucks and heavy equipment used for construction projects
  • Protecting company from liability if an employee is in an accident during work hours
  • Reimbursing medical bills and lost wages if an employee is injured in a work vehicle

Based on insurance rate data and factors such as industry risks, fleet size and vehicles, driver records, claims history, and other underwriting considerations, the estimated average annual pricing for commercial auto insurance for businesses in the water and sewer line and related structures construction industry with NAICS code 237110 is around $2,500 – $3,500 per vehicle. This price range was derived from looking at average base rates charged by insurance carriers for this specific industry after factoring in various risk-related adjustments.

Estimated Pricing: $2,500 – $3,500

Workers’ Compensation Insurance

Workers’ compensation insurance provides critical benefits and protection for businesses in the water and sewer line construction industry. This industry faces risks of injury from tasks like operating heavy machinery, trench work, and more. Work comp ensures employees receive medical care and lost wages if hurt on the job. It also shields companies from expensive lawsuits. It allows firms to remain compliant with state laws requiring this coverage. Having work comp coverage is important for covering injuries that may occur due to hazards like working underground, heavy lifting, and trench work. It also pays benefits for permanent disabilities or death resulting from severe incidents.

Category List
Benefits
  • Covers medical expenses if an employee gets injured on the job
  • Provides wage replacement if an employee cannot work due to a job-related injury or illness
  • Protects the business from lawsuits if an employee is injured on the job
  • Reduces absenteeism and increases productivity as injured employees can recover with benefits and return to work sooner
  • Satisfies state laws that typically require construction businesses to carry workers’ comp insurance
Use Cases
  • Covering medical expenses and lost wages for employees injured on the job
  • Providing benefits for employees who are injured or develop an illness due to long-term exposure to hazards in this industry like working underground, heavy lifting, trench work, etc.
  • Covering permanent partial or permanent total disability benefits for severe injuries
  • Covering death benefits for families of employees killed on the job

Workers’ Compensation insurance pricing is estimated to be between $2 and $4 per $100 of payroll for businesses in NAICS Code 237110 (Water and Sewer Line and Related Structures Construction). This is based on statistical analysis of loss data and risk factors for this industry, which involves physical labor and worksites that carry risk of injury. The rate is affected by a business’s experience modifier, which can modify the rate up or down based on the business’s own claims history over the past few years. An average or new business is estimated to pay around $3 per $100 of payroll.

Estimated Pricing: $3 per $100 of payroll

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions (E&O) insurance, provides critical protection for businesses working in water and sewer line construction by covering lawsuits, settlements, legal fees, and more that may arise from negligent acts or omissions. It protects against claims from faulty workmanship, defective designs or plans, negligent inspections or testing, and issues stemming from inaccurate or incomplete paperwork. Estimated annual premiums for professional liability insurance in this industry range from $4,000 to $6,000, and may be higher for larger businesses.

Category List
Benefits
  • Protects against claims of negligent acts, errors or omissions
  • Covers legal fees and costs associated with lawsuits
  • Covers costs of claim settlements or judgments awarded to plaintiffs
  • Demonstrates financial responsibility to clients
  • Helps retain existing clients and attract new business
  • Provides coverage for liability arising from defective designs, specifications or construction oversight
  • Is especially important for construction businesses working on water and sewer projects due to potentially serious consequences of defects or failures in structures and systems
Use Cases
  • Protection against claims of negligent acts, errors or omissions in their work
  • Coverage for faulty workmanship or defective designs/plans
  • Defense costs if a client or third party sues over issues that may arise from work performed
  • Coverage if inspection or testing services performed negligently leads to issues
  • Protection if inaccurate or incomplete paperwork leads to future disputes

Based on typical pricing models for this industry, the estimated average annual premium for professional liability insurance would be between $4,000 to $6,000 per year. This pricing is derived considering average revenue and payroll size of businesses in this NAICS code. Larger businesses with over 50 employees or $5M in annual revenue may see pricing upwards of $8,000 per year.

Estimated Pricing: $4,000-$6,000

Property Insurance

Property insurance provides critical coverage for water and sewer line construction businesses to protect their valuable physical assets, equipment, property and operations from unexpected losses due to events like fire, storms, vandalism or other risks. It ensures the business can continue operating smoothly even after experiencing property damage and covers costs for repairs or replacement of assets. Property insurance offers protection for things like office properties, buildings and contents, materials and supplies stored on sites or in warehouses, valuable equipment and supplies during transport. It also ensures financial losses are covered if construction work is halted due to a covered property loss to continue paying employees and operating expenses.

Category List
Benefits
  • Covers physical damage or losses to buildings, structures, machinery, equipment and other property
  • Protects assets and physical property from unexpected events like fire, storms, vandalism etc.
  • Covers liability if a third party claims damage was caused by your operations
  • Covers temporary living expenses if property is uninhabitable due to a covered loss
  • Replacement cost coverage to fully repair or replace damaged property
  • Covers losses from inadequate construction/renovations or faulty workmanship
  • Covers equipment while temporarily off-site for service or repairs
  • Coverage for loss of business income and extra expenses if operations are disrupted
  • Covers equipment while temporarily off-site for service or repairs
Use Cases
  • Covers damage or destruction to equipment and machinery used for construction projects like excavators, dump trucks, construction tools, etc.
  • Covers damage to materials and supplies stored on construction sites or in warehouses like pipes, valves, fittings, concrete, asphalt, etc.
  • Covers damage to office properties, buildings and their contents from risks like fire, lightning, storms, etc.
  • Covers losses from business interruption if construction work is halted due to a covered property loss to continue paying employees and operating expenses
  • Additional coverage could include inland marine insurance to protect valuable equipment and supplies during transport to construction sites.

Based on industry comparisons and risk factors, the estimated average annual pricing for property insurance for businesses in the Water and Sewer Line and Related Structures Construction industry with NAICS code 237110 is around $1.25 per $100 of insured property value. This pricing takes into account factors like the type of work performed, equipment used, site locations/conditions, safety practices, claims history, and limits/deductibles chosen. The pricing was derived from insurance rate filings and average premiums for similar businesses.

Estimated Pricing: $1.25 per $100 of insured property value

Commercial Umbrella Insurance

Commercial umbrella insurance provides valuable protection for businesses in the water and sewer line construction industry. It acts as an extra layer of liability coverage above a company’s standard commercial general liability policy to shield against losses exceeding primary limits. Given the risks inherent in water and sewer line projects which can expose contractors to costly litigation, umbrella policies offer crucial financial security for firms in this high hazard NAICS code 237110 sector. Umbrella coverage also helps safeguard personal assets of business owners from lawsuits and provides coverage for risks not covered under other liability policies such as pollution events.

Category List
Benefits
  • Protect business assets from claims exceeding primary liability limits
  • Provide additional liability coverage for unexpected risks
  • Cover legal costs and damages from lawsuits
  • Protect personal assets of business owners and executives
  • Covers liability from non-owned/hired vehicles used during operations
  • Covers pollution liability if a hazardous incident occurs on a jobsite
  • Covers claims brought by subcontractors or their employees
Use Cases
  • To provide additional liability coverage above the limits of the underlying commercial general liability and employer’s liability policies
  • To protect the company from major losses like accidents involving serious injuries on job sites or damages to third party property
  • To cover legal costs and potential settlement amounts or judgments from lawsuits arising out bodily injuries or property damages that may exceed the underlying liability limits
  • To protect company assets like vehicles, equipment and property in case an accident results in a lawsuit exceeding the underlying policy limits

Based on average claims data and risk factors for this industry, the estimated annual pricing for commercial umbrella insurance would be around $5,000 – $8,000. Factors such as company size, years in business, liability limits, and loss history would impact the final quoted price. The risk of work-related injuries, property damage from construction activities, and general liability from worksites lead to higher premiums for this construction industry compared to less risky business types.

Estimated Pricing: $5,000 – $8,000

Commercial Equipment Insurance

Commercial equipment insurance is an important policy for water and sewer line construction companies to protect their valuable machinery, tools and vehicles. It provides coverage if equipment is damaged, stolen or causes liability issues while being used on projects. Specialized contractors rely heavily on excavators, backhoes and other expensive equipment to complete water and sewer infrastructure projects. Commercial equipment insurance can replace or repair vital machinery if anything occurs and also offers liability protection.

Category List
Benefits
  • Covers replacement costs if equipment is damaged or stolen
  • Provides liability protection if equipment causes bodily injury or property damage
  • Covers equipment while in transit or at temporary work sites
  • Covers equipment during maintenance, service or repairs
  • Covers equipment idled due to a mechanical breakdown
  • Covers employees training costs if new equipment needs to be learned
  • Covers loss of income if equipment is damaged and out of service
  • Covers equipment leased or rented from third parties
Use Cases
  • Protecting heavy equipment such as backhoes, excavators, bulldozers from damage, theft or loss
  • Insuring pipe installation equipment such as trenchers, pipe layers and boring/drilling machines
  • Covering trucks, trailers and other vehicles used to transport crews and materials
  • Replacing specialized tools and machinery if damaged on job sites
  • Providing coverage if equipment is damaged during the installation process like breaking pipes or striking other utilities underground

Based on average equipment values and liability exposures for businesses in the water and sewer line and related structures construction industry, the estimated annual premium for commercial equipment insurance would be around $5,000 – $10,000. Key factors that influence pricing include the total insured value of construction equipment like excavators, backhoes, trucks, etc. as well as business attributes like annual revenue, number of employees, claims/loss history.

Estimated Pricing: $5,000 – $10,000

Commercial Crime Insurance

This reference provides an overview of commercial crime insurance for businesses in the water and sewer line and related structures construction (NAICS Code: 237110) industry. It discusses the top benefits, use cases and estimated pricing for this type of insurance coverage. Some key risks this industry faces include employee theft, third party theft of valuable equipment, fraud and theft of project funds. This type of insurance can help financially protect construction businesses from losses due to these criminal acts by reimbursing for costs associated with investigating crimes, replacing stolen items and defending against legal allegations.

Category List
Benefits
  • Protects against risks of employee theft, embezzlement, larceny and fraud
  • Covers costs associated with investigating employee criminal acts
  • Reimburses for losses due to employee dishonesty like false invoicing or time card fraud
  • Protects business if money, securities or other property is stolen or destroyed by non-employees
  • Provides legal defense costs if allegations of crime need to be legally challenged
  • Covers losses from employee fraud like creating fake invoices to embezzle funds
  • Insures company assets stored in warehouses or work sites are protected from crimes
  • Covers damage or theft of company vehicles, equipment and tools at job sites
Use Cases
  • Employee theft or embezzlement
  • Third party theft of materials, tools or equipment
  • Money and securities fraud by employees or third parties
  • Network security and privacy liability for data breaches
  • Theft or diversion of funds meant for construction projects

Based on typical commercial crime insurance pricing for this industry, the estimated average annual premium would be around $1,500. This is derived from factors such as the industry risk profile, average revenue size of businesses in this category, and common policy limits. The premium amount could vary depending on individual business characteristics such as number of employees, annual revenue, past claims experience, and security measures in place.

Estimated Pricing: $1,500

Conclusion

By maintaining the right mix of insurance policies, water and sewer line contractors can feel confident operating their business knowing they have financial protection in place. The insurance lines discussed help address common risks faced by NAICS 237110 businesses and ensure proper coverage is in place should an incident occur.

Frequently Asked Questions

Share via
Facebook
X (Twitter)
LinkedIn
Mix
Email
Print
Copy Link
Copy link
CopyCopied