The 5 Biggest Construction Insurance Blunders
You’ve built your business on solid ground—but is your insurance built on quicksand?
Let’s face it: even the toughest contractors can fall victim to insurance blunders that could sink their business faster than a loose nail in a flat tire. Don’t throw your hard-earned cash into the dumpster!
Here are 5 hilariously common (but painfully costly) mistakes contractors make—and how to dodge them like a runaway wheelbarrow.
1. Thinking General Liability Covers Everything
General Liability insurance is the MVP of your business—it protects your assets (and maybe even your sanity) when a third party gets injured or property gets damaged on your watch.
But thinking it’s a “cover-all” plan? That’s like wearing a hard hat to a hurricane—good effort, but it’s not enough.
⚠️ Reality Check: General Liability only covers third-party lawsuits. So if your equipment gets stolen, your truck gets totaled, or Mother Nature decides to redecorate your job site, you’re on your own without the right add-ons.
2. Assuming Your Work Truck is Just a Truck
Your truck isn’t just your ride—it’s practically your coworker. But if you’re using a personal auto policy to cover a work vehicle, you might be in for a nasty surprise:
💥 Accident while hauling equipment?
👷 Employee using your truck?
🔧 Permanent toolboxes attached?
Your personal policy will shrug and walk away like a bad date. What you need is Commercial Auto Insurance—because your truck deserves better.
3. Not Protecting Your Precious Tools
Think about it: your tools are the lifeblood of your business. Lose them, and you’re about as effective as a plumber without a wrench.
Picture this: You stop for coffee at a gas station, and in the 4 minutes it takes to grab a latte, some joker swipes your trailer full of tools.
Without Inland Marine Insurance (aka Tools & Equipment Insurance), you’re buying all that gear again—out of pocket.
Moral of the story? Protect your tools like they’re your grandma’s prized casserole recipe.
4. Underestimating Mother Nature’s Wrath
Contractors know the weather can turn on you faster than an angry client.
🌪️ Hurricane-strength winds knock down a tree?
🔥 A surprise fire?
💦 Flash floods ruining your progress?
Without Builder’s Risk Insurance, Mother Nature’s tantrum isn’t just a mess—it’s a financial disaster. This coverage ensures you can clean up, replace materials, and get back to business faster than you can say, “Was that a tornado?”
5. Ignoring the Price of a Toe
Yes, you read that right. Do you know how much a toe is worth? A national average of $23,000
in workers’ compensation claims. And let’s not even talk about fingers, legs, or other, uh, key attachments.
⚠️ Pro Tip: If you’ve got employees, you need Workers’ Compensation Insurance — not just because it’s often mandatory, but because it protects your team (and your bank account) when accidents happen.
Don’t Let Blunders Hit Your Wallet
Contracting is risky, but your insurance doesn’t have to be. Cover your business the smart way and keep your profits right where they belong: in your pocket.
💡 Bonus Tip: If you’re wondering what else your insurance might be missing, give us a call. We’ll make sure you’re covered from every angle—and keep you laughing all the way to the bank.
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