Arizona Cement Contractors Insurance Policy Information
Arizona Cement Contractors Insurance. Cement and concrete contractors clear and level job sites, lay wooden or metal molds or forms, place mesh or reinforcement bars (rebar) as needed, and pour wet concrete into the forms. The cement or concrete must then cure (be kept moist so it dries slowly to maintain its strength), harden, and dry. Concrete is made of aggregate (sand and gravel), fluid cement (the binding agent), and water which may be mixed in transit or at the job site.
Pigments, crushed glass, or small decorative stones may be added to the mixture or the poured concrete may be stamped into a pattern to achieve a designer effect. Many contractors specialize in flatwork such as basements, driveways, patios, parking lots, roads, and sidewalks. Others pour structures varying from foundations and footings to walls and bridge decking.
Cement contractors are responsible for a variety of duties, from installing foundations to laying sidewalks, and from applying cement onto buildings to building curbs - and so much more! While the specific roles of your AZ cement contracting business depend on the unique nature of your individual business, there are a variety of inherent risks associated with operating a company in this industry.
To protect yourself from these risks, investing in the right type of Arizona cement contractors insurance coverage is vital for your business, your employees, your clients, and yourself. Why is insurance so important? What type of insurance should AZ cement contractors carry? Find the answers to these questions below.
Arizona cement contractors insurance protects your business from lawsuits with rates as low as $87/mo. Get a fast quote and your certificate of insurance now.
Why Is Insurance Important for Cement Contractors?
Cement contractors invest in and work with heavy-duty equipment. They are exposed to the elements. They are responsible for fulfilling the services that they state they will provide. They work on other people's property. Despite your best intentions, accidents can happen; an employee could be injured by a malfunctioning piece of machinery or a client could sue you for breach of contract, for example.
It's always wise to expect the unexpected and commercial insurance is what protects you from the unexpected. Instead of having to pay for property damages, medical costs, and legal defense fees on your own - all expenses that can be financial crippling - commercial insurance will help to cover these costs.
In other words, having the right Arizona cement contractors insurance coverage is vital, as it helps to protect you from unexpected exorbitant fees that have the potential to cause financial ruin.
What Type Of Insurance Should Cement Contractors Have?
There are several types of insurance coverage that cement contractors should invest in; the specific policies you require depend on the specific nature of your business. The size of your operation, the location of your business, the number of people you employ, and the type of services you provide are just some of the factors that will determine exactly what type of insurance you need and how much coverage you should invest in. However, with that said, there are some specific coverage options that all cement contractors should carry, such as:
- Commercial Property - This type of coverage protects the property that your cement contracting business operates out of, including the structure itself, the contents within it, and some of the exterior structures, such as the signage and walkways. If a tree falls on top of your business property and damage the roof, some of the siding, and some of the machinery stored inside, your commercial property insurance policy would help to cover the cost of any necessary repairs or replacements.
- Business Auto - Your personal auto insurance policy won't cover any vehicles that are used for business-related purposes, even if you're using your personal vehicle; therefore, if you use trucks, vans, or any other vehicles for your cement contracting business, you'll need to invest in commercial auto insurance. This type of policy protects third-party vehicles and other types of property that are damaged as a result of an accident the driver of your commercial vehicles cause; for example, if an employee side-swipes another car while he is driving a work truck, your commercial auto insurance would help to cover the damages of the other vehicle.
- Workers Comp - If you employ a staff of any size - whether it's 1 or 100 - you will also need to carry workers' compensation insurance - in most states. This type of policy covers and work-related injuries or illnesses that your employees may sustain. For example, if a piece of machinery malfunctions and injures a member of your crew, workers' comp will pay for any related medical expenses, as well as the wages she lost during recovery. It can also help to pay for any training she might need for a new job if she is unable to return to work as a result of her work-related injuries, and it can assist with legal defense fees, should the employee take legal action.
These are just some of the recommended Arizona cement contractors insurance policies that concrete contractors should carry; other coverage options that are highly suggested include commercial general liability, inland marine, and errors and omissions insurance, just to name a few.
AZ Cement Contracting's Risks & Exposures
Premises liability exposure is low at the contractor's premises since visitor access is limited. Equipment and materials stored in the open may present an attractive nuisance to children. At job sites, the contractor is responsible for the safety aspects of the entire project even after hours when there is no construction activity.
Excavation, the operation of heavy machinery, and the weight of large mixers and mix-in-transit vehicles present numerous hazards to the public and to employees of other contractors, particularly when there is structural work. Hazards increase significantly in the absences of job site control, including spotters, signage, and barriers where appropriate. Injuries can occur from trips and falls over debris, equipment, or uneven ground. Excavation and digging can result in cutting utility cable, damaging property of the utility company and disrupting service to neighboring residences or businesses.
A significant morale hazard may be indicated by the absence of detailed procedures to determine utility locations and to research prior uses of the land. Construction sites create an attractive nuisance hazard, especially if work is close to residential areas. Wet cement in particular attracts children and vandals. Safety barriers such as perimeter fencing may be needed, especially if the excavation work is complete but other construction has not yet started.
Completed operations liability exposures can be very high due to the injury and property damage that can result from improper mixing, installation, and curing. Concrete may collapse, crack, or rapidly deteriorate. The mixture of the cement, concrete, and curing agents must meet all engineering specifications. Quality control and full compliance with all construction, material, and design specifications is necessary. Hazards increase in the absence of proper record keeping of customer specifications, work orders, change orders, as well as inspection and written acceptance of finished work by the customer.
Environmental impairment liability exposures may arise from the waste generated in the fueling and cleaning of heavy equipment, include mix-in-transit containers. Allowing waste to accumulate either at the job site or in the contractor's yard could result in contamination of air, ground, or water supply. Collection, transportation, and disposal of waste must meet all federal and state requirements.
Workers compensation exposures can be very high. Lifting strains and crush injuries may arise at every phase of the operations. From the clearing and excavation of the site, whether in land or water, to the laying of forms, to pouring of concrete, to the drying, curing, and completion of the project, frequent and severe losses can occur. Work done above water, below ground, or at heights can result in injury or death from collapse of scaffolds or trenches, drowning, falls, or being struck by falling objects.
Other common hazards include cuts and puncture wounds from working with hand tools, foreign objects in the eye, and hearing impairment from cumulative exposure to high-decibel operations. Fine sand from the aggregate may cause eye injuries or lung disease such as silicosis. Pouring mix concrete from a mixer usually involves operations on top of the vehicle. The absence of proper guarding may indicate a morale hazard.
Property exposures at the contractor's own location are generally limited to an office and storage of material, equipment, and vehicles. Ignition sources include electrical wiring, heating, and air conditioning systems. The contractor's yard may include piles of gravel as well as large mixing or batch plants that combine the ingredients for mixing cement or concrete and load them into trucks. The exposure is greatly increased if there are large drum mix plants or batch plants involving heat and flammable bitumen or tar.
If repair work on vehicles and equipment is done in the building, fire hazards arise due to the storage and use of flammable gasoline and other fuel sources. If equipment and supplies are stored in the yard, they may be damaged due to wind, vandalism, and theft. Appropriate security measures must be in place including lighting and physical barriers to prevent unauthorized access.
Crime exposure is from employee dishonesty. Background checks should be conducted prior to hiring any employee. All orders, billing, and disbursements must be handled as separate duties and annual external audits conducted.
Inland marine exposure is from accounts receivable if the contractor bills customers for services, contractors' equipment and tools, goods in transit, installation floater, and valuable papers and records for custom project plans, clients' and suppliers' information. Construction equipment and concrete mixed in transit are heavy and difficult to transport. The training of drivers and haulers, especially with respect to the loading, tie-down, and unloading, is important to avoid damage from overturn or collision.
At the job site, hazards come from uneven terrain, from the abrasive or caustic nature of some of the materials, or from the sheer weight of the concrete as it may exceed the equipment's load capacity. Tools and equipment may be damaged by dropping, and falling from heights, or being struck by other vehicles. The concrete forms lack identifying marks and must often be left overnight or longer at a site, increasing the exposure to vandalism and theft.
Equipment may strike underground objects or utility lines during excavation or fall into mud, water, pits, or sinkholes. It may be damaged by rock, land, or mudslides or from fire due to overload. Materials and equipment left at job sites may be stolen or vandalized unless proper controls are in place. If the insured does guniting of foundation piles, the pressurized application should be well controlled. (Gunite is a protective cement/sand coating sprayed over wire mesh onto piles.) Copies of project plans should be kept at an offsite location for easier restoration.
Commercial auto exposures have catastrophic potential. Since mix-in-transit units are among the heaviest on the road, they can cause severe injury or damage even in apparently minor collisions. These units are awkward to handle while driving or in operation and are difficult to tow if they overturn or become stuck in mud. All drivers must have appropriate licenses and acceptable MVRs. Vehicles must be maintained and the records kept in a central location.
AZ Cement Contractor Insurance
To find out exactly what type of Arizona cement contractors insurance coverage - and how much - you should invest in, speak to an experienced insurance broker.
Arizona Economic Data, Regulations And Limits On Commercial Insurance
Anyone who is thinking about starting a business knows that choosing the right location for their operations is essential. The right market and a demographic that will benefit from and be interested in purchasing the products and services a business offers is crucial for the success of an organization. If you're considering Arizona as the location for your company's headquarters or a new division of your business, it's imperative that you make sure the state offers a climate that will allow your operation to thrive.
By analyzing the employment rate and the key industries that are thriving in the state, you can determine if Arizona will be a suitable location for your business. It's also important to be aware of the forms of commercial insurance coverage business owners are required to carry. Below, we look at all three areas to help you decide if the Grand Canyon State is the right place for you to establish a business.
Economic Trends for Business Owners In Arizona
The unemployment rate in Arizona is higher than the national average; as of May, 2019, the rate was 4.9 percent, while the national average as 3.6 percent. However, compared to 2009, when the rate was 10.9 percent, there has certainly been a decrease in the rate of unemployment.
Urban areas are the ideal locations for businesses in the Grand Canyon State, such as Phoenix, Tempe, Scottsdale, and Chandler; but, smaller areas offer promise, too. Payson, Snowflake, Flowing Wells, and Cottonwood are just some of the smaller locations that are seeing economic growth in Arizona.
There are several key industries that are thriving within the state, including:
- Aerospace and defense
- Bioscience and health care
- Film and digital media productions
- Professional and business services
- Technology and innovation
- Trade, transportation, and utilities
Commercial Insurance Regulations In AZ
The Arizona Department of Insurance regulates insurance in Arizona. Commercial insurance is vital for a business, as it protects the interests of all who are involved with the organization; owners, employees, customers, and vendors. Like any other state, certain forms of commercial insurance are mandated in Arizona, meaning business owners are legally required to carry these policies.
All employers are required to carry workers' compensation insurance, as it provides coverage for work-related accidents and illnesses that employees sustain. Commercial liability insurance, which covers third-party personal injury and property damage liability claims, might also required for certain licenses.
For establishments that sell alcohol, liquor liability insurance is a legal requirement. Lastly, companies that rely on vehicles for business-related purposes (truckers, etc.) must carry a commercial auto insurance policy to protect the drivers of their commercial vehicles, as well as other drivers on the road.
Additional Resources For Construction Contractors Insurance
Learn about construction contractors insurance, including how much the premium costs and what is covered - and how business insurance can help protect your construction business from lawsuits.
- Demolition Contractors
- Foundation Layers
Construction contractors have substantial needs for many types of insurance coverage. Most would point to the importance of coverage for completed operations, premises liability coverage during construction operations at jobsites and professional or design errors and omissions insurance.
Such coverages can be provided only when the interests of the contractor and of the property owner are understood; particularly the contractual obligations assumed by the contractor. Next in significance is the workers compensation exposure followed by business automobile. Inland marine coverage for expensive mobile equipment, supplies, other tools of the trade and builders' risk can be vital.
Liability coverage is needed by a construction contractor in order to obtain most jobs. In addition, if a contractor wants to stay in business, it must be obtained to protect it from lawsuits due to its premises operations, off-site locations and products/completed operations exposures. Owners and contractors protective liability and railroad protective liability coverages may also be required in certain cases in order for a contractor to meets its obligations for particular jobs.
Many construction contractors do not have the usual location-specific buildings and business personal property exposures. Their business property is more mobile and, therefore, better covered with inland marine coverage forms. However, for those larger construction contractors that own buildings and/or maintain business inventory there are many coverage forms and choices available to them.
Construction contractors use their vehicles to get to and from their workplaces and jobsites. They also use vehicles to transport equipment and inventory to those locations. It is important to cover the liability of these vehicles for injury or damage they may cause, as well as to provide coverage for damage to the vehicles themselves.
Employers are required to provide coverage for injuries sustained by their employees while on the job. Construction contractors must comply with these requirements but some try to avoid them by hiring subcontractors. These subcontractors may actually operate and qualify as employees. The relationship between a contractor and its subcontractors must be carefully evaluated in order to determine if workers compensation coverage is still needed.
Minimum recommended small business insurance coverage: Business Personal Property, Employee Dishonesty, Surety Bonds, Accounts Receivable, Builders' Risk, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Umbrella Liability, Business Automobile Liability and Physical Damage, Hired and Nonowned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Building, Business Income with Extra Expense, Earthquake, Flood, Leasehold Interest, Real Property Legal Liability, Contractors' Equipment, Goods in Transit, Installation Floater, Cyber Liability, Employment-related Practices Liability, Environmental Impairment Liability, Stop Gap Liability, Unmanned Aerial Vehicles (UAV) (Drones).
Request a free Arizona Cement Contractors insurance quote in Anthem, Apache Junction, Arizona City, Avondale, Avra Valley, Benson, Bisbee, Buckeye, Bullhead City, Camp Verde, Casa Grande, Casas Adobes, Catalina, Catalina Foothills, Cave Creek, Chandler, Chinle, Chino Valley, Citrus Park, Coolidge, Corona de Tucson, Cottonwood city, Doney Park, Douglas, Drexel Heights, El Mirage, Eloy, Flagstaff, Florence, Flowing Wells, Fort Mohave, Fortuna Foothills, Fountain Hills, Gilbert, Glendale, Globe, Gold Canyon, Golden Valley, Goodyear, Green Valley, Guadalupe, Holbrook, Kingman, Lake Havasu City, Lake Montezuma, Litchfield Park, Marana, Maricopa, Mesa, New Kingman-Butler, New River, Nogales, Oro Valley, Page, Paradise Valley, Paulden, Payson, Peoria, Phoenix, Picture Rocks, Prescott, Prescott Valley, Queen Creek, Rincon Valley, Rio Rico, Saddlebrooke, Safford, Sahuarita, San Luis, San Tan Valley, Scottsdale, Sedona, Show Low, Sierra Vista, Sierra Vista Southeast, Snowflake, Somerton, South Tucson, Summit, Sun City, Sun City West, Sun Lakes, Surprise, Tanque Verde, Tempe, Thatcher, Three Points, Tolleson, Tuba City, Tucson, Tucson Estates, Vail, Valencia West, Verde Village, Village of Oak Creek, Wickenburg, Williamson, Winslow, Youngtown, Yuma and all other cities in AZ - The Grand Canyon State.
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