Demolition Contractors Insurance

Demolition contractors are involved in the wrecking of buildings or structures, excavation, grading of land, and recycling of construction debris. Having the right demolition contractors insurance can protect your business from potentially catastrophic litigation costs after an accident and a large claim. A comprehensive business insurance policy designed for demolition contractors can protect your company from employee errors, public injuries, property damage, pollution claims, and more.

A local independent insurance agent can help you get the tailored demolition contractor insurance you need. They'll get you matched to a policy that includes the appropriate amounts and types of coverage. Up first, though, here's a closer look at insurance for demolition contractors, including what it covers and why it's important.

Why Do You Need Demolition Contractor Insurance? 

Demolition contractors dismantle buildings, structures, machinery, or equipment. The exact process used to carry out a demolition depends on the type of structure and a variety of other factors. Interior demolition is often performed with only hand tools, while large demolition projects can involve heavy machinery, wrecking balls swinging from a crane, and even explosives. 

Demolition contractors are exposed to dangerous conditions in which an employee or a third party could be injured, or someone's property could get damaged. You could make a mistake and damage a nearby building, or your own machinery or property could get destroyed. Further, the improper disposal of asbestos or other pollutants could contaminate the demolition zone or the nearby area. 

All of these incidents would likely be followed by serious financial repercussions as your business paid for property damage, medical expenses, and even legal expenses if there was a lawsuit. So, if you own a demolition business, you must safeguard it from its unique risks by investing in a comprehensive insurance policy. An independent insurance agent can help your business complete the appropriate demolition contractor insurance application to get the coverage you need today.

Why Demolition Contractors Need Commercial General Liability Insurance 

Demolition contractor insurance is not just one type of coverage but several forms designed around the unique risks your business faces. Perhaps the most essential type of coverage your company needs is commercial general liability insurance (CGL). Commercial general liability insurance offers broad coverage for third-party injuries and property damage that may occur on your premises or as a result of your operations and possibly result in a lawsuit. 

CGL coverage can protect you if members of the public get injured by explosives stored on your premises or if a demolition blast accidentally injures onlookers at a job site. Improperly stored explosives or errors during blasting can also damage nearby property. In both cases, you’d be responsible for paying for medical bills and property damage for anyone who was affected. The likelihood that your business would get sued is also very high. 

Fortunately, CGL insurance covers expenses for third-party bodily injury and personal property damage claims and also covers your legal expenses and financial settlements or judgments in the event of a lawsuit. Not only is having general liability insurance essential for your business's financial recovery in case of an incident, but it can also be next to impossible to secure jobs without it. Many prospective clients require contractors to provide proof of liability insurance up-front before hiring them.

What Other Insurance Policies Do Demolition Contractors Need? 

Your demolition contractors insurance program is not complete with just general liability coverage. Your policy will likely contain many other types of insurance to fully cover your industry's unique risks. These can include the following and more:

• Contractors professional liability insurance: This protects your business in the event of lawsuits related to claims of harm done to the public by professional services performed by your crew.
• Workers' compensation insurance: This protects your employees if they get injured on the job or develop a work-related illness. 
• Environmental liability insurance: This covers a variety of pollution exposures your business and crew may face. Asbestos and other pollutants can be present in the buildings you demolish and impact the air or groundwater near a demolition site. Also, the storage, use, and disposal of explosives can be problematic, as is the release of smoke, dust, methane, and other toxins after a blast.  
• Commercial umbrella insurance: This coverage, also known as excess liability, can extend your existing liability insurance's coverage limit to $1 million or more, which can help your business recover from a hefty lawsuit.
• Commercial property insurance: This covers your buildings, workspaces, and all kinds of commercial property, including equipment, tools, office furniture, computers, and more if they get damaged or destroyed by fire, smoke, theft, vandalism, lightning, etc. 
• Business interruption insurance: This reimburses your business for lost income and helps pay for certain ongoing expenses if you are temporarily unable to operate due to a covered loss (e.g., fire, hail damage, vandalism, etc.).
• Commercial vehicle insurance: This covers incidents involving company vehicles, such as accidents, lawsuits, theft, and vandalism.
• Inland marine insurance: This protects your equipment, tools, and other supplies from theft, loss, vandalism, or damage while they're in transit between job sites.

An independent insurance agent can help you build and complete an appropriate demolition contractor insurance policy.

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Are Contractors Bonds Necessary for Your Demolition Business? 

You might need a variety of contractors bonds or surety bonds, depending on the size and scope of the projects you take on. Bonds are critical for contractors who work on commercial building sites. Your business also may be required to have certain kinds of bonds to secure its required licensing.

Contractors bonds can be essential for finding, securing, and performing work. They're typically used to guarantee some aspect of the bidding process or building project and ensure the project owner that your business is properly licensed, insured, and prepared to complete the project as promised. 

Each type of bond is unique and tailored to a specific project. While you may not need them for every job, it’s likely you’ll need various types of contractors bonds for most of the projects you complete. An independent insurance agent can also advise you on whether or not your business needs contractors bonds. 

How Much Does Demolition Contractor Insurance Cost? 

Demolition contractor insurance costs may vary depending on factors such as the size of your business, the number of employees you have, and how much business property you need to insure. In general, the larger your business and the more revenue it generates annually, the higher the cost of its coverage is likely to be. However, a local independent insurance agent can help you find the most affordable demolition contractor insurance near you.

The Benefits of Working with an Independent Insurance Agent

Independent insurance agents simplify the search process of finding the right demolition contractor insurance. They’ll shop and compare policies from multiple carriers and then walk you through several handpicked options and explain the details. Most importantly, they’ll be there for you when claim time comes. They can also assist you with updating your business's coverage as necessary.