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Commercial Risk Management Workers Compensation

6 Most Common Construction Insurance Claims

Understanding Construction Risks

Construction sites are known to pose a number of risks. Injuries due to job site conditions, accidents while using machinery, property damage due to weather conditions, and theft of materials can put builders in jeopardy. 

These potential threats are why property owners and construction businesses carry commercial insurance policies. Workers’ compensation, builder’s risk, commercial property, and general liability are all types of insurance coverage that come into play on an active job site. 

Any business owner in the construction industry must talk with their trusted insurance provider to determine the policies they need to protect their organization from costly losses.

Most Common Construction Claims

Having proper job site protocols and risk management techniques in place can help your business avoid the following most common construction claims:

  • Worker Injuries: The most common type of construction claim relates to on-the-job injuries. Due to the nature of the work, slips and falls and other accidents are common on job sites. 
  • Theft and Vandalism: Unfortunately, theft and vandalism frequently result in insurance claims. Construction sites typically offer expensive equipment and building materials with relatively low security, leading to increased crime.
  • Property Damage: Accidental property damage to the construction project and neighboring buildings or land is a common cause for claims. 
  • Third Party: Surprisingly, when third parties such as contractors and visitors are on site, accidents resulting in claims are frequent. Unfamiliarity with the job site and surrounding activities can easily lead to injuries. 
  • Weather: The weather is often the most unpredictable part of a building project. Heavy rains, wind, snow, and fire can all create substantial damage quickly, resulting in large claims.
  • Equipment Incidents: Property damage and injuries can occur when misusing heavy machinery. Additionally, contractors insure their equipment and can submit claims if the machinery itself is damaged or non-functioning. 

Policies You Need

If you aren’t sure exactly what types of policies you need for your construction business, please contact Steve Longenecker (303-808-9351 x2) at Mountain Insurance: Longmont and we would be happy to spend some time with you to create a tailored plan. 

We give out $25 gift cards for referrals that become our insurance clients.

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