Protecting Your Construction Business

Workers' compensation premium is commonly based on payroll and the work employees perform. A framing carpenter, drywall finisher, and office-based project manager may have different classifications and rates. The estimates used at the start of the policy are compared with actual records at audit.

Someone who splits time between field and shop may qualify for payroll divided across more than one job classification. That split has to be documented. Without supporting records, the insurer may assign all of the payroll to the highest-rated category that applies.

Payroll growth, new field roles, and incorrect job classifications can all create an audit adjustment. Review payroll and duties during the year instead of waiting for the audit. Begin the commercial insurance intake for a coverage review.

Completed-operations coverage is the part of a commercial general liability policy designed to address certain covered injury or damage arising from completed work. The policy period, when injury or damage occurred, exclusions, and other terms all matter.

Problems may surface long after a project ends. A wiring fault can start a fire, or failed waterproofing can allow moisture damage. Continuous completed-operations protection may matter for claims arising years later.

Example scenario: a roofing sub finishes a commercial re-roof in spring. The next winter, water tracks in through a flashing detail and damages a ceiling. The owner files a claim. Completed operations coverage within the GL policy can respond, subject to the policy's terms, conditions, and exclusions. Switch carriers at renewal without addressing continuity and the coverage picture gets messier.

General contractors often require specific liability and workers' compensation limits, additional insured status, a waiver of subrogation, and primary wording. These requirements must be supported by the policy or endorsements, not only the certificate.

The certificate is a summary. It shows a policy exists; it does not create coverage. An additional insured endorsement that appears on a certificate but was never attached to the policy is not enforceable. The policy governs, not the certificate face.

So send the GC's requirements to your agent before the policy is placed, not after the request lands. Some endorsements need carrier processing time and are not available on demand. Build the requirements in from the start and skip the last-minute scramble. Email requests for active projects to service@blisins.com.

Commercial property insurance protects assets at a fixed location. It does not automatically cover tools and equipment that travel to job sites. Once the power tools leave the shop in a work truck, they are out from under a standard property policy.

An inland marine tools and equipment floater can protect eligible portable property in transit or at a jobsite. Review security conditions, valuation, limits, deductibles, and any overnight-storage restrictions.

Example scenario: power tools sit in a locked contractor van at a job site overnight. The van gets broken into and the tools are gone. A commercial property policy tied to your business address does not respond. Inland marine coverage can respond to the value of the stolen tools, subject to the policy's terms, limits, and exclusions. Review the inland marine and equipment coverage guide for additional considerations.

If you use subcontractors, current insurance records are more than paperwork. A sub with inadequate liability limits or expired workers' compensation coverage can pull your business into a claim arising from that sub's work.

An uninsured subcontractor can create significant costs. An injured worker may pursue your business, or a property owner may name you in a claim involving the subcontractor's work. State law, contracts, and policy terms affect the outcome.

Require a certificate from every active subcontractor before work begins. Confirm that the limits meet the subcontract and that your business is named as an additional insured when required. Track expiration dates and follow up at renewal. These records also help show insurers that the company manages subcontractor risk consistently.

Personal auto policies may restrict or exclude regular commercial use, and an employee's personal policy does not replace the business's own liability planning. Commercial auto can address covered liability and, when selected, physical damage for scheduled business vehicles, subject to policy symbols and terms.

For trade contractors, commercial auto is often required before a GC lets vehicles on site. The certificate shows your limits and names the GC as an additional insured when required. Managing it alongside the GL certificate is standard workflow for active subs.

Hired and non-owned auto coverage may protect the business when employees use personal or rented vehicles for work. It does not automatically cover damage to an employee's car. Review actual vehicle use and policy terms.

Insurers look at your work type, payroll, subcontractors, vehicles, and claims together because a change in one area can affect the others. Keep those details organized and make sure they describe the company you operate now.

Claims history affects several policies. Completed-work disputes, injuries, and open workers' compensation claims can influence the options and price. Explain what changed after each incident so an insurer sees the corrective action, not only a claims report.

Renewal is a review, not a rollover. If payroll, work, subcontractor use, or vehicles changed during the year, make sure the renewal reflects the company you operate now. The commercial insurance intake begins that review.