The Importance of Umbrella Insurance for Construction Companies

The construction industry is rife with risks and exposures, with even a single accident or error potentially inflicting devastating consequences. Employee injuries, property damage and other incidents can incur expensive financial losses and costly project delays. These lurking threats, coupled with the inherently risky operations of the construction sector, can foster significant liability risks. That’s where commercial umbrella insurance emerges as an essential investment.

What Is Commercial Umbrella Insurance?

These inherent risks and exposures make it necessary to have multiple layers of loss control measures, which commercial umbrella insurance can establish by backing up other liability coverage. Should an accident or other incident result in third-party losses exceeding the policy limits of other policies, umbrella coverage can offer additional aid.

Why Are These Policies Important?

The construction industry consistently ranks as one of the most dangerous in the United States. The constant presence of motor vehicles, heavy machinery, sharp tools and hazardous materials can make even a slight misjudgment or oversight deadly. Additionally, tasks are often conducted at a fast pace or while working at a height, exacerbating already significant risk levels.

Consider the following scenarios and how a suitable commercial umbrella insurance policy may make all the difference:

• If your employees accidentally start a fire on a job site that spreads to neighboring properties, the resulting damages could quickly exhaust your general liability insurance policy.
• If employees are injured in an incident while on the job site, such as scaffolding collapsing or a chemical spill, the employer’s liability coverage within a workers’ compensation insurance policy may not be sufficient.
• If you’re transporting materials and equipment to a job site but are responsible for an accident on the highway, umbrella coverage could be key should the resulting losses exceed your commercial auto insurance policy’s limits.

We’re Here to Help

Contact American Eagle Insurance & Tax Insurance today to learn more about commercial umbrella insurance or get a free quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.