What types of construction insurance are essential for managing risks?

2 Professional Liability Insurance

Professional liability insurance, also known as errors and omissions (E&O) insurance, protects you from claims of negligence, errors, or omissions in your design, engineering, or consulting services. For example, if your structural calculations are faulty, or if your advice causes a project failure or delay, your professional liability insurance can cover the costs of defending yourself and compensating your client. This type of insurance is especially important for structural engineers who provide high-risk and complex services.

4 Workers' Compensation Insurance

Workers' compensation insurance covers the medical expenses and lost wages of your employees who are injured or become ill on the job. For example, if one of your workers falls from a scaffold or suffers from a back injury, your workers' compensation insurance can pay for their treatment and recovery. This type of insurance is mandatory in most states and can protect you from lawsuits by your employees.

5 Commercial Auto Insurance

Commercial auto insurance covers the liability and property damage that may result from the use of your vehicles for business purposes. For example, if you or your employees cause an accident while driving to or from a project site, or if your vehicle is stolen or vandalized, your commercial auto insurance can cover the costs of repairing or replacing your vehicle and paying for the injuries or damages to others. This type of insurance is required by law if you own or lease vehicles for your business.

6 Umbrella Insurance

Umbrella insurance, also known as excess liability insurance, provides additional coverage beyond the limits of your other liability policies. For example, if you face a large claim that exceeds your general liability, professional liability, or commercial auto insurance limits, your umbrella insurance can cover the difference. This type of insurance can help you avoid financial ruin in case of a catastrophic event or lawsuit.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?