Heavy Construction Company Insurance
Budgets, cash flows, bonding and funding. Planning, politics, procurement, subcontractors, staffing issues, and supply chain logistics. Quality control, construction laws, weather, health & safety and, of course…the bidding process. Running a heavy construction business is challenging work but it’s work that’s vital to Canada’s physical and economic infrastructure. For this post the commercial general liability industry experts at ALIGNED have pulled together information on contingency planning for heavy construction companies, risk management strategies and crucial coverages that should be included in a heavy construction company insurance program.
The Canadian Construction Association makes the following recommendations to heavy construction companies to help guide the adjustments and considerations they make for their contingency planning:
- “Review of existing projects
- Review contracts for any conditions or requirements that may be difficult to meet in the current circumstances…
- Cost and schedule
- Project initiation
- Recognize that certain types of projects will be prioritized and in higher demand.
- Project financing
- Review financing agreements with banks and other organizations to ensure capacity and flexibility to support projects. Explore alternative arrangements with banks and bonding construction companies as needed.
- Engaging with subcontractors and suppliers
- Source parts and materials locally or through readily available means to minimize impacts of disruptions to the supply chain…
- Recommendations for owners and consultants
- Use technology to expedite inspections and review of completed work and reduce site visits when appropriate…”
Click here for the entire checklist.
Below are some of the more traditional risks heavy construction companies face and some steps to help mitigate them.
Risk Management for Heavy Construction Businesses
Here are a few examples of key risks faced by heavy construction contractors:
- Bodily injury caused to the general public
- Loss of skilled and experienced workers
- Property damage
- Loss of time, productivity, and money on construction project
- Low margins
- Damaged reputation and loss of future work
In general, these are some of the steps that heavy construction businesses can take to help to assess specific risks:
- Identify risks/hazards and who or what has the potential to be harmed with contractors equipment
- Assess the probability and consequences
- Prioritize identified risks
- Determine appropriate control measures
- Assess remaining and residual risks and make contingencies
- Record your findings
- Regular reviews and revisions
Here are a few risk-management measures for heavy construction companies:
- Eliminate or substitute potential hazards
- Reduce the possibility of occurrence
- Reduce the effect or harm
- Self-finance where possible
Of course, the best way to protect your business and reduce the effect or harm caused by operational hazards in the heavy construction industry is through insurance tailored for heavy construction companies. A list of the most important coverages is below.
Heavy Construction Companies Insurance – Coverages You Need
It’s more accurate to describe heavy construction business insurance as a program as there isn’t a “heavy construction companies insurance policy”. An insurance program or a package is the ideal way to provide insurance coverage to heavy construction companies as it makes each plan and each coverage within the plan customizable to meet the specific needs of each heavy construction companies. Below are the types of coverages we recommend a heavy construction company insurance program consider :
- Builder Risk/Course of Construction Insurance
- Wrap up Liability
- Demolition insurance liability coverage
- Directors & Officers (D&O) / Board Insurance
- Errors & Omissions (E&O) / Professional Liability / Indemnity Insurance
- Commercial General Liability Insurance
- Cyber Liability & Privacy Insurance
- Commercial Auto Insurance / Commercial Vehicle Insurance
- Crime Insurance / Fidelity Insurance
- Boiler & Machinery Insurance / Equipment Breakdown Insurance
- Drone Insurance / UVA Insurance / UAS Insurance
- Commercial Property & Equipment Insurance
We also provide construction bonds including:
- Contractor License Bond
- Bid Bond
- Surety Bond Consent
- Performance Bond
- Labour and Material Payment Bond
- Supply Bond
- Sewer Tapper Bond
- Road Cut Bond
- Prepaid Contractor License Bond
- Roofer’s License Bond
- Electrical Contractor’s License Bond
- Electrical / Gas Safety Act Bond
- Gas Contractor’s License Bond
- Gas Safety Act Bond
Visit the “Commercial Surety Bonds for the Construction Industry” section of our “Types Of Commercial Surety Bonds In Canada” page for more information.
Get ALIGNED with the Right Heavy Construction Business Insurance for You
Our brokers are more than commercial industry experts, they’re advocates who work with Canada’s top insurers to get you the types of coverages you need at rates you can afford. Contact an ALIGNED advocate to get a free quote on heavy construction companies insurance started in minutes or use our free online tool.
