All contractors, both in the private and public sector, should have a solid understanding of different types of construction business insurance available for construction projects. Besides knowing how to gather and interpret construction insurance rates, a company should also consider the level of risk the project involves, and any special types of liability insurance that might be needed.

Construction insurance companies, lawyers and other risk management professionals can provide businesses with construction insurance education and training. You can find these training opportunities through:

1. Courses that outline the regulations and requirements for construction liability insurance.

2. Seminars that teach you how to keep the construction insurance cost low.

3. Additional online resources for construction businesses to learn about insurance.

Action Steps
The best contacts and resources to help you get it done

Take classes to learn more about insurance for construction business

Quick training courses are available for industry professionals who use or sell construction insurance. For builders, a good understanding of construction insurance is essential. Contractors must comply with state requirements that mandate which types of coverage are right for different kinds of construction projects. Most classes also provide an overview of risk management.

I recommend: Training-Classes.com provides a course on the basic principles of construction insurance. This course gives an overview of the types of insurance available, plus teaches about the risks and regulations that apply to different projects. The Jardine Lloyd Thompson Group provides industry professionals with a course in risk management and construction insurance.

Attend seminars to learn more about insurance for construction companies

To learn about types of construction insurance and how they apply to different building projects, attend a seminar or workshop. These events may be hosted by insurance professionals or construction lawyers. Many workshops are held throughout the year to keep the construction industry updated as regulations and laws change.

I recommend: The Seminar Group provides a two-day seminar that covers many topics in insurance for the construction industry, including builder's risk, emerging issues and legal judgments. FindaSeminar.com lists a seminar on construction insurance coverage from Lorman Education Services that focuses on what to do when filing a claim.

Explore additional online resources for construction risk insurance

If you want to check on a specific topic in construction insurance without consulting a lawyer or risk management professional, you may find some basic information from an online resource. These resources are often created by professionals with a background in law, construction or risk management.

I recommend: In addition to its seminar, Lorman Education Services sells its bound manual and reference guide, "Everything a Construction Player Should Know About Insurance." R&R Insurance Services provides educational resources for construction companies looking for the right insurance, including a construction boot camp for basic insurance information. Custom Home Online provides a comprehensive guide to construction insurance for building and remodeling firms.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Because there are different types of contractor liability insurance for different projects, it is a good idea to have a risk management professional or consultant help you choose the right insurance type for your business.

As a contractor, you already know your state requires you to carry business insurance for construction companies. In most states, you'll need to have contractor liability and workman's compensation insurance. You may wish to add to that construction business insurance by having risk insurance, commercial vehicle insurance or any number of other, more specialized liability insurances.

As you check construction insurance rates, be sure to choose a reliable company that caters to the construction business. When it comes to the business of construction, insurance companies sometimes specialize and sell insurance only to those in your field. Be sure you also understand your state's requirements, as well as your personal business needs, and ask for construction insurance quotes from several different suppliers. In this guide, we'll look at buying:

1. Construction liability insurance,

2. Worker's compensation insurance for construction business,

3. And commercial vehicle insurance.

Action Steps
The best contacts and resources to help you get it done

Buy general and contractor liability insurance

Commercial general liability insurance (also called CGL) covers property damage and bodily injury. Throughout the United States, the law requires that contractors have this type of insurance. You may also buy design and environmental liability insurance to supplement your general policy.

I recommend: Contractors Choice Agency specializes in contractor insurance for those working on residential and commercial properties. Zurich offers a Builders Risk Insurance Program for construction of single or multiple buildings. Arch Insurance Group provides construction risk insurance, environmental liability, general liability insurance and many other construction insurance policies. RA&MCO provides professional liability insurance for contractors and construction managers.

Purchase worker's compensation construction insurance

Worker's compensation (also called workman's comp) is a type of insurance covering employees who are injured or become ill at work. In most states, businesses must have worker's comp for their employees, and every state has slightly different requirements for coverage.

I recommend: ACE offers worker's compensation insurance with customized coverage. Contractors Prime Insurance Services is a construction insurance company offering worker's comp, as well as other types of insurance. Moonstone Interactive provides worker's comp for a variety of businesses. National CMServices provides high and low risk worker's comp.

Find commercial vehicles insurance for construction business

Private insurance policies don't cover most commercial vehicles. In order to protect your investment in trucks and other vital commercial vehicles, you must have a commercial vehicle insurance policy. Coverage options usually include bodily injury, property damage, uninsured or underinsured motorist coverage and medical payments.

I recommend: Liberty Mutual offers fleet and commercial vehicle insurance. American International Group also offers commercial vehicle insurance, tailor-made for your business. Safeco Insurance Company of America provides auto and truck insurance for businesses of all types. Progressive insures many commercial vehicles, including pickups, vans and more.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Some trade or business associations can provide a discount on construction insurance cost if you purchase through specific insurance providers. Be sure to check out this option, as it could save you a bundle.

All states require that contractors have a specific type and amount of insurance for workers and equipment. Contractors must carry at least the state minimum insurance to avoid tickets and penalties. There are many different kinds of construction insurance and terms used in construction insurance that some contractors may not be familiar with. Reviewing these terms and phrases will help you find the policies that will provide your company with the best insurance options.

Action Steps
The best contacts and resources to help you get it done

Bid bonds

A bid bond is a written guarantee that the company will provide a bond on a piece of equipment, job or property before the item or property is purchased or the job is contracted. Once the contract is signed the company must provide a performance bond.

I recommend: Visit BusinessDictionary for more information about bid bonds.

Performance bonds

A performance bond, or surety bond, is a bond presented to a client by a construction company that covers the client if the job is not finished or damage is caused during the job.

I recommend: Learn more about performance bonds from Love To Know.

Umbrella liability

Umbrella liability is a type of insurance that covers companies against claims that are not covered in their primary policy. Umbrella policies normally insure a set amount and will pay up to that amount on anything the original policy does not include.

I recommend: Wise Geek provides more information about umbrella liability insurance. Visit the McGlone Agency to learn more about umbrella policies.

Wrap-up insurance

Wrap-up insurance covers multiple companies that work together on a specific job. Wrap-up coverage is only good for the specific job it is purchased for.

I recommend: Learn more about wrap-up insurance at the International Risk Management Institute. C-Risk provides details on what a wrap-up insurance policy can do for your company.

Corridor deductible

A corridor deductible is an insurance deductible that is applied to a major medical plan and pays only what the original plan does not pay. Corridor deductibles have specific dollar amounts specified in the contract that they will pay.

I recommend: Learn more about corridor deductibles Bob McCloskey Insurance. AllBusiness defines a corridor deductible.

Hired auto and non-ownership liability

Hired auto and non-ownership liability insurance is coverage for rental vehicles, temporary lease vehicles or vehicles that employees drive while working for the company.

I recommend: Insurevents has information about hired auto and non-ownership liability. Sadler & Company also provides information about hired auto and non-ownership liability.