Colorado Steel Erection Contractors Insurance Policy Information
Colorado Steel Erection Contractors Insurance. Construction is essential, but it's also one of the most dangerous industries; especially if you're working as a steel erection contractor. Despite your best efforts to follow all safety protocol, there is always a chance that something could go wrong and someone on the job or a third-party could be injured or property could be damaged.
Steel erection contractors build, repair, or maintain the steel framework for buildings and other structures, including high-rise apartments and offices, industrial complexes, warehouse buildings, and signs. Much of their work is structural and load bearing.
Operations may involve the use and placement of heavy steel girders, columns, and I-beams which may be welded together or fastened with bolts or hot rivets to create a metal framework for further construction. While steel is flexible, it can corrode in humid climates or lose strength at high temperatures, which could result in collapse.
The hazards vary considerably depending on the size of the job and the number of stories. The CO contractor may offer design services.
To protect yourself from any potential mishaps, it's imperative for steel erection contractors to invest in the right type of insurance. Why is Colorado steel erection contractors insurance important? What type of coverage do you need? Find the answers to these questions and more below.
Colorado steel erection contractors insurance protects your business from lawsuits with rates as low as $67/mo. Get a fast quote and your certificate of insurance now.
What Type Of Insurance Do Steel Erection Contractors Need?
CO contractors who work in the steel erection industry should invest in three types of insurance coverage at the minimum - specifically: general liability, professional liability, and workers' compensation.
General Liability Insurance
General liability insurance provides coverage for third-party personal injuries and property damages. For example, in the event that a delivery driver trips over a piece of equipment at the site you're working on, suffers an injury, and files a lawsuit against you, general liability insurance will provide you with the coverage that's needed to pay for any medical care that the third-party may require, any legal fees that you may incur, and anything that a court of law may be liable for.
If the property owner of the building you're working on claims that you damaged their building and files a lawsuit, general liability insurance would also cover any legal expenses that you may end up facing, as well as any repairs that you may be required to pay.
Professional Liability Insurance
With professional liability, if you a client that hired you to erect a steel structure claims that you failed to do your job properly and files a lawsuit against you, you'll have the coverage you need to pay for the legal fees, any repairs that you may need to make to correct the problem, and it can also help to protect your business from any negative press that you may receive.
Workers Compensation Insurance
Workers' comp provides coverage for any workers that you may employ. For example, if a member of your team suffers a work-related injury and requires medical care, this policy will cover the medical expenses and can provide the employee with the wages he or she may lose while recovering.
If the employee files a lawsuit against you, claiming that the equipment that you provided wasn't properly maintained and caused the accident, for example, workers' compensation insurance can also assist for the related legal expenses.
Additional Colorado Steel Erection Contractors Insurance
Other types of Colorado steel erection contractors insurance that might be needed include:
- Commercial Property: - If you run your business out of a physical space, you should also invest in commercial property insurance. This policy covers the building, the contents within it, and some of the exterior structures, from acts of nature, peril, theft, and property damage that may occur as a result of a break-in, whether attempted or successful. For instance, if your business is defaced and looted, commercial property insurance can help to cover the costs of any related repairs.
- Commercial Auto - With commercial auto insurance, you can protect any vehicles that are used for work-related purposes. If a truck is involved in an accident while driving to a site and damages another vehicle, for example, this policy would cover the related expenses to the other vehicle.
- Mobile Equipment - This policy protects any mobile equipment when it isn't stored on your commercial property. If you have cranes, saw, ladders, and other type of erection equipment that you keep on a client's property until the job is finished, this policy will help to repair or replace that equipment if it is damaged or stolen.
Why Is Steel Erectors Insurance Is Important?
Employee injuries, third-party property damage, accidents with work-related vehicles, a fire in your commercial space; the costs that are related to the risks that steel erection contractors are exposed to can be quite exorbitant.
By having the right type of insurance coverage in place, if the unexpected occurs, instead of having to pay the related expenses out of your own pocket, your policy will cover them for you.
In addition to helping to offset potential high claims costs, steel erection contractors are legally or contractually required to carry some types of coverage; general liability, workers' compensation if they employ a team, commercial auto for vehicles that are used for work-related purposes, etc.
Colorado Steel Erector's Risks & Exposures
Premises liability exposures at the contractor's office are generally limited due to lack of public access. Outdoor storage may present vandalism and attractive nuisance hazards. Off-site exposures are extensive. The contractor must control access to the area and post signs to protect the public from slips and falls over tools, power cords, materials, and scrap.
Steel erection always involves work at heights. Persons and property may be injured by falling objects, especially when work is done near existing structures or residences. Pedestrians and vehicles must be protected from falling objects through barricades and netting. Unprotected welding, cutting, and riveting may cause fires or serious injuries to the public or other contractors' employees. Repair and maintenance work may entail closing roads and redirecting traffic.
Improper signage or barricading could result in a vehicle collision and catastrophic loss of life. Both the structure under construction and the equipment (such as cranes) may create an attractive nuisance hazard to children who enjoy climbing. All equipment must be disabled when not in operation to prevent untrained individuals from using it. Fencing must be in place with appropriate warning signs to prevent trespassing. The use of subcontractors as well as any contractual liability exposures should be examined.
Personal injury exposures include assault and battery and invasion of privacy. Background checks should be conducted for any employee who will have regular contact with customers.
Completed operations liability exposure can be severe should a structure collapse due to the number of people who could be injured or killed and the potential for damage to the property of others. The competency of the designer and engineer of the project, the quality of materials, and the integrity of the completed structure are all critical.
The absence of an aggressive quality control program that documents full compliance with all construction, material, and design specifications may indicate a morale hazard and make it impossible to defend against serious claims. Any changes made by the engineers and carried through in the design must be noted prior to implementation.
Hazards may increase in the absence of proper record keeping of work orders and change orders, as well as inspection and signed approval of finished work by the customer.
Professional liability exposures may be serious if the insured does design work or alters plans. The exposure increases if the firm fails to conduct thorough background checks to verify employee's education and training, permit other workers to do tasks that only professionals should handle, or if error checking procedures are ignored or are inadequate.
All design specifications must be followed, and inspections regularly conducted. Documentation must be clear, with changes marked and authorizations signed by both the engineer and the customer.
Workers compensation exposure is severe. Erection work always involves work at heights, with danger from falls or from falling objects. Sudden changes in wind or weather can make hoists and scaffolding less safe. Lifting and back injuries, hernias, sprains, and strains can occur from loading or unloading machinery, setting up structural parts, or working from awkward positions.
Collapse or overturn of equipment may result in severe injury or death from crushing or suffocation. Common hazards include slips and falls, foreign objects in the eye, hearing impairment from noise, temperature extremes, cuts or puncture wounds, auto accidents during transportation to and from job sites, bites from insects or vermin, and exposure to pollutants.
Welding can cause eye damage and burns. If welding must be done in confined spaces, proper ventilation and fire protection are essential to prevent or reduce injury.
Property exposures at the contractor's own location are generally limited to those of an office, shop, and storage of materials, equipment, and vehicles. Ignition sources include electrical wiring, heating, and air conditioning systems. If fabrication, which includes cutting and welding, is done on premises, the potential for fire or explosion increases due to sparks and flames produced by these processes.
Welding involves the use of tanks of gases that must be stored and handled properly to avoid loss. There should be basic controls such as chained storage in a cool area and the separation of welding from other operations away from combustibles, either in a separate room or with flash/welding curtains. Some material may be stored on site, but it is not susceptible to damage by fire or weather.
Inland marine exposures include accounts receivable if the contractor bills customers for services, computers, contractors' tools, and equipment, including scaffolding, hoists, and portable welders, goods in transit, installation exposure, and valuable papers and records for customers' and suppliers' information. Backup copies of all data should be stored off premises. Machinery, tools, or building materials left at job sites and awaiting installation are exposed to loss by theft, vandalism, damage from wind and weather, and damage by employees of other contractors.
The contractors' equipment schedule can include large cranes used to put beams in place. Equipment and supplies are subject to drop and fall from heights, especially when lifting girders or beams. Since any accident may trigger both the equipment and installation coverages, as well as possible third-party liability, many contractors prefer to hire a crane with a licensed operator.
The lease contract should specify responsibilities for providing insurance. Goods in transit consist of tools and equipment as well as materials owned by either the insured or the customer for installation at the job site.
I-beams and girders are usually drop shipped to the site by the manufacturer. If the contractor transports these, special equipment is necessary due to the length of the beams. Materials are not highly susceptible to damage in transit. An installation floater will be needed if the materials to be installed are delivered to the site in advance of the installation. Some construction supplies may be target items for theft by third parties or employees.
Crime exposure is primarily from employee dishonesty. Background checks, including criminal history, should be performed on all employees. There must be a separation of duties between persons handling deposits and disbursements and reconciling bank statements. All items should be physically inventoried on a regular basis.
Business auto exposures can be high due to the transport of girders, beams, equipment, machinery, and supplies to and from job sites. Special modifications or built-in equipment such as lifts and hoists may be awkward and require special handling and tie-down procedures.
Drivers should be properly trained to prevent overturn and to navigate through high traffic areas. Serious property damage or injury to employees of other contractors, passing pedestrians, or motorists can arise during loading, transport, and unloading equipment and materials. Long drives with oversized equipment may lead to driver fatigue.
For long-term projects away from home base, personal use of company vehicles poses a concern. Similarly, employees may use their own vehicles on company business for long periods, especially to transport crews to the jobsite. All drivers must have appropriate licenses and acceptable MVRs. Random drug and alcohol testing should be conducted. Vehicles must be maintained, and the records kept in a central location.
CO Steel Erection Contractors Insurance - The Bottom Line
To find out what type of Colorado steel erection contractors insurance policies you'll need to carry, speak with an agent or broker that specializes in commercial construction insurance.
Colorado Economic Data & Business Insurance Information
If you're thinking about doing business in Colorado, it's important to familiarize yourself with the economic status of the state, as well as the regulations and limits regarding insurance for businesses. Below, we offer insight into pertinent economic data related to the state of Colorado, as well as key business insurance information so that you can put your best foot forward and make the best decisions for your business in the Centennial State.
Business Economic Trends In The State Of Colorado
According to recent reports from the leading economic researchers, the state of Colorado has a healthy outlook, economically speaking. While fewer jobs will be added in 2018 than have been in recent years, the growth rate is still expected to climb.
It's anticipated that entrepreneurs who are really interested in taking risks in new ventures will be the leading contributors for the state's economic growth. However, less risky industries will lend to the economy, as well, such as cloud computing and cybersecurity.
In regard to the fuel industry, it is anticipate that there will be an increase in valuation of about 9 percent in the year 2018, and this growth pertains mainly to gas and oil. This increase will largely be due to the improvement in energy prices, which are lower this year than they have been in recent years. It's hopeful that energy prices will continue to fall so that these industries can continue to thrive.
In terms of agriculture, it's projected that farms in the state of Colorado will do a little better this year than they did in 2017. Leading economic research agencies are expecting that the income from agriculture will reach nearly $1.4 billion in 2022.
In regard to the retail market, it is also expected that this industry will see steady growth, despite the rising trend of e-commerce solutions. In fact, it's estimated that the rate of employment in the retail sector will increase by as much as 2.1 percent during the 2022 fiscal year.
Regulations And Limits For CO Commercial Insurance
The Colorado Division of Insurance regulates insurance in Colorado. CO is considered a "fault state", meaning that business owners are not legally required to carry liability insurance; however, liability coverage is the type of commercial insurance that is most commonly purchased in the state. Commercial liability insurance covers business owners and their clients for things like bodily and personal injury, commercial property damage, and injuries that pertain to advertising injuries.
The only commercial insurance that business owners are required to carry is workers' compensation insurance. Any business that employees an hourly or wage staff must carry this type of coverage to protect their employees.
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.
- Blasting & Drilling Contractors
- Bridge Contractors
- Building Contractors
- Cable Layers
- Demolition Contractors
- Dock & Pier Contractors
- Dredging Contractors
- Foundation Layers
- General Contractors
- Road Contractors
- Sewer Contractors
- Steel Erection Contractors
- Surety Bonds
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).
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