Demolishing companies, demolition businesses and site preparation companies do hard, difficult work. They operate large equipment. That equipment can cause a significant amount of damage in some situations.
Though the goal is to tear something down, these businesses do precision work. You do, after all, have to hit a specific target. There is a high rate of potential risk here that a mistake will occur. Hitting the wrong thing, after all, could spell trouble. Liability insurance is essential. But, do you have enough general liability insurance to meet your needs?
Know the Risk
Work with your business insurance agent. Discuss the specific type of business you do. Your agent should understand the specific risks associated with demolition. Discuss a few key factors that can impact your needs.
- How many accidents have occurred in the last two years involving your business?
- What types of claims have others filed against the company in recent years?
- What types of work does the business do? The more risk-prone this is, the more important it is to discuss.
- What do other companies in the area experience in terms of damage and loss?
- How experienced is your team? How experienced are you in the field?
All of these factors play a role in understanding the risks your company faces. From here, you can begin to assess all of the risks the company faces. Some of those may include the following:
- The business can demolish the wrong structure or too much of it.
- There may be site damage to property after the event.
- A third party might experience injury as a result of an accident.
- Damage to pipelines, electrical systems, or other in-ground systems. These might be private or public utilities.
- You could damage another business’s property or assets.
General liability insurance should provide coverage for these and other risks. Your business insurance agent can discuss the needs your company has.
Extensive Coverage May Mean Professional Liability Insurance
You provide advice to your clients. You tell them how something is going to happen. They trust you to perform a key task properly. Because of this, your company may benefit from professional liability insurance. It extends your typical coverage further. It usually works to protect you with more insurance for larger claims, particularly related to clerical mistakes.
The right amount of business insurance is critical for any demolition company. It can give your business the ability to operate without the fear of making a mistake. As a business owner, this coverage also protects you from lawsuits that could otherwise close your business. Discuss your needs and options with an agent carefully and do so on an annual basis. Call us at (405) 373-2977 for an Oklahoma City business insurance quote.