If you put up buildings or you provide niche work for a company that does general construction, as some carpenters and plumbers do, you probably already know how complex the insurance and bonding process can be for big projects. If you’re running your own team for the first time, though, you get a new view on the various kinds of coverage you need to protect yourself, your employees, and your clients. You’ve got liabilities and risk exposure in areas common to most businesses, like workplace accidents, but you also have long-term exposure to liability based on the quality of your team’s craft. On top of that, you need to protect yourself from loss due to the risks you’ve taken on, while also protecting your client in case you can’t deliver or your work is substandard.
Balancing Your Risk Coverage and Bond Needs
Some builders accidentally misunderstand surety bonds as a replacement for a builders’ risk policy, and some make the mistake the other way around. As Daniels Insurance Inc explains in their resource, risk insurance is its own policy, one that protects your business and its assets, supplies, and so forth. That means if there’s a theft from a worksite, vandalism, or an accident, the risk insurance covers your losses. It’s no substitute for bonds that protect your client in case of setbacks or failures, in fact, it’s a complementary form of coverage you can sometimes get from the same provider as your risk insurance if you know how to ask.