Insurance 101 For Construction Contractors

Working in the construction industry can be immensely satisfying—you get to create, build and see your projects come to life. However, being the owner of a mid- to large-scale construction company also comes with unique risks, due to factors like having a large, varied fleet of vehicles and managing employees and subcontractors who do potentially hazardous work.

That means it’s essential to have the right insurance coverage. But where do you start? Since every business in this industry is a bit different, the best way is to discuss your specific business needs with a trusted advisor, like the agents in GEICO’s Commercial Insurance division.

There are several areas of consideration when choosing the right protection for your business: the products/services you offer, your property and equipment, your business vehicles and your employees. Many factors can influence the level of coverage you should be carrying, including:

  • Size of your business. The more employees you have and the more projects you’re working on, the more insurance you may need.
  • Nature of your operation. Is your focus on commercial or residential projects? Each comes with different requirements.
  • Riskiness of the work. Every job has its own unique risks, but some factors could push that risk level higher. For example, are you in the roofing business and work with ladders? Or do you regularly work on projects more than three stories off the ground?
  • Types of equipment. You want to cover all kinds of equipment—large and small, owned and rented.
  • Bonding. Do you and your employees need to be protected in case of a loss claim? You may want to have them bonded.
  • Certificates of Insurance. Some buildings and sites could require you to have them in order to enter. If so, do you know how to get them?

Here are some things to keep in mind for the insurance products that can help protect you.

GEICO can help with business insurance.

General Liability

For construction contractors, a general liability policy is essential, not just because you and your employees are operating on sites with potentially risky tools (like heavy machinery), but also because you’re managing a job site that can potentially cause property damage or third-party injuries. Or, if you’re sued for libel or slander, a general liability policy could provide coverage for those claims.

Commercial Auto

This is the second (but no less important) type of insurance you should be carrying. Why? Let’s start with your personal vehicle. If you’re using it to drive to and from job sites with tools and equipment or for other business reasons, your personal auto policy will provide limited or no coverage if you have an accident. In reality, you likely have more vehicles—of all different types—operating on the road and at job sites. You want to be sure you’re covered if those vehicles or their drivers are involved in an accident or damage someone else’s property.

To assess your commercial auto needs, consider the following factors:

  • Number of vehicles. You’ll want coverage for all the vehicles in your fleet. The more vehicles you have, the more insurance you’ll need.
  • Types of vehicles. What kind of vehicles are in your fleet? You may have several different types of commercial-grade vehicles, such as dump trucks, flatbeds, tow trucks or utility beds, and they all require different levels of insurance.
  • Customizations. Have you customized your vehicle in a way that’s important for your business operations? For example, installing a ladder rack to the outside of a van? Customizations like this require adjustments in your level of insurance.
  • Drivers. Who will be driving your vehicles? You want to put checks in place to ensure all vehicle operators have good driving records before they get behind the wheel.

Workers’ Compensation

Your employees are a critical component to the success of your business, so having the appropriate coverage to meet the unexpected costs of a work-related accident helps ensure that both your business and your employees are taken care of. Workers’ compensation is a requirement in most states, so understanding your risks and obligations is important.

GEICO Has Your Back

Whatever the needs are for your particular business, GEICO can help you figure out the coverage. We have hundreds of licensed agents and many years of experience in business insurance. Plus, we know the ins and outs of state and federal regulations, as well as the requirements for necessary certificates.

Build your construction business and we’ll help you cover it! Visit to find out more and get a quote today!

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  1. JAMES AAGARD says,

    I have my personal auto coverage with Geico and would like to put my business insurance along with it. Does Geico offer contractors general liability insurance?