Demolition Contractors Insurance New York Policy Information
Demolition Contractors Insurance New York. Demolition contractors are in the business of tearing down roofs and walls. This type of work involves heavy machinery and falling objects, which could put them, their employees, and anyone they work with or who is near the jobsite, at risk of serious injuries. Like any other business, there are also a number of other liabilities that demolition contractors could face.
Demolition contractors (or wrecking) dismantle buildings, structures, machinery, or equipment. Techniques employed vary according to local codes, the type of building or structure being demolished, and the exposure to adjacent properties. Limited demolition work used for remodeling projects may be done with only hand tools (called "tear-out"). On a larger scale, work may be done with a wrecking ball swung from a crane or with explosives, including implosion that generates gravitational collapse of a building.
Rough sorting of material may take place, particularly if the insured engages in salvage operations on the equipment, machinery, or building materials. One major concern is the exposure to and the removal or containment of asbestos and lead from older buildings, requiring the wrecking operation to be carefully done in compliance with environmental standards for removal and disposal.
If you are a NY demolition contractor, it's important to safeguard yourself from the perils that could arise. In addition to following safety protocols and offering training courses, carrying the right type of demolition contractors insurance New York coverage is an absolute must.
Demolition contractors insurance New York protects your business from lawsuits with rates as low as $67/mo. Get a fast quote and your certificate of insurance now.
Why Is Insurance Important For Demolition Contractors?
There are a number of incidents that can arise on the jobsite. A third-party or an employee could become seriously injured. A mistake can be made during a demolition project. Your equipment could become damaged. These are just some examples of the type of incidents that could occur, and serious financial repercussions could be associated with all of them. You could be held liable for injuries and be required to pay for medical care, or you might be facing a lawsuit, for example.
Depending on the severity of the situation, the liabilities that are associated with your business could end up putting you in a serious financial situation. To avoid having to pay for costs out of your own pocket and potentially going bankrupt or going out of business completely, it's absolutely essential for you to have the right demolition contractors insurance New York coverage. With the right policy, you can protect yourself from financial perils.
Insurance Policies for Wrecking Contractors
What type of demolition contractors insurance New York policies should wrecking contractors carry? Below, we highlight some of the most critical types of coverages you should have:
- Commercial General Liability: This type of insurance offers protection from third-party injuries and property damages. For instance, if a vendor makes a delivery to the jobsite and is hit by a falling object, commercial general liability insurance will help to cover the cost of any necessary medical care, as well as any legal fees that you could end up facing.
- Professional Liability: Even though your staff is highly trained, mistakes can happen. For example, a crew member might demolish something that wasn't supposed to be touched. In that case, the property owner could sue you for negligence. Professional liability insurance will protect you from any legal fees that could arise in this type of situation. It could also help to pay for any repairs that may be needed.
- Workers' Compensation: If you employ a crew, you are going to need to invest in workers compensation insurance. This type of policy will protect your employees in the event that they are injured on the job, or in the event that they develop a work-related illness. For example, if a piece of machinery malfunctions and an employee sustains an injury, workers comp insurance will help to pay for the medical care that he or she needs, any wages that he or she may lose while recuperating from the injury, and any legal action that the employee might take against you and your business.
- Commercial Equipment: There's no doubt that you have various types of equipment that you use to get the job done. This type of equipment can come with some pretty hefty price tags. Should your equipment become damaged or stolen, you would need to replace it. Commercial equipment insurance can help to protect you from having to pay the exorbitant cost of replacing that machinery out of your own pocket.
- Commercial Auto: If you or your staff uses any vehicles for business-related reasons, commercial auto insurance is a must. This type of policy will protect you and your employees in the event that an accident occurs while operating a vehicle for work-related reasons.
NY Demolition And Wrecking Risks & Exposures
Premises liability exposures are extremely high, both at the contractor's premises where explosives are stored and at any site using blasting material. Demolition and wrecking operations may attract crowds of onlookers. There must be barriers in place to protect the curious. The buildings or structures must be carefully combed for people prior to any destruction. Lack of proper storage on premises or improperly set explosives at the jobsite may result in severe bodily injury, loss of life, and major structural damage, either directly or by shock waves.
The noise from detonation may result in serious hearing impairment. The presence of fuels, flammables, and combustibles at the jobsite poses a significant hazard control challenge. Building services, if not disconnected properly, may result in fumes, gas or water leaks, and shock hazards, as well as interruption of utility services to adjacent properties. The collapse of a structure, intentionally or prematurely, may cause vibration damage to adjacent premises.
The areas around the buildings and the structures nearby should be reviewed and evaluated prior to any destruction to prevent damage and claims for damage predating the demolition. Salvage may involve cutting, compacting, or crushing, which presents fire or explosion hazards. Extraordinary measures must be taken to prevent the entry of unauthorized persons to the insured's premises or jobsite, as explosives are highly attractive to thieves and terrorists.
To control access to the jobsite, the contractor may employ spotters or guards, install gates and barbed wire, post signs, or contact occupants of adjacent properties directly. Equipment and piles of debris are attractive nuisances. All equipment must be disabled when not in operation to prevent untrained individuals from using it. Debris piles must be barricaded to prevent climbing. Fencing must be in place with appropriate warning signs to prevent trespassing. Security guards should be provided as necessary.
Completed operations exposures may be limited in barren unoccupied areas. If there are neighboring buildings or residences, claims may be brought for latent or cumulative structural damage that may not appear until long after the explosives have been detonated.
Environmental impairment liability exposures are high from the storage, use, and disposal of explosives and resulting waste and debris from demolition sites. Lead or stored fuels may contaminate soil and groundwater supplies. The release of dust or methane gases may impair air quality. Friable asbestos (asbestos insulation that crumbles easily and becomes airborne) may pose a serious risk. Proper written procedures and documentation of both the transportation and disposal process is important.
Workers compensation exposure is severe due to the handling and use of explosives. An unplanned detonation can result in severe injury or death to multiple workers at once from fire and explosion. Injury or death can occur from falls, being struck by falling objects, or an attempted robbery. Common hazards include slips and falls, foreign objects in the eye, hearing impairment from noise, cuts and puncture wounds from drilling, bites from insects or vermin, exposure to pollutants and weather conditions, concussions from blasting operations, and back injuries from lifting during loading, unloading, and setup. As operations are often conducted in remote areas, it may be difficult to transport an injured worker to a medical facility to receive prompt treatment.
Property exposures at the contractor's own location are usually limited to an office and storage of equipment and vehicles. The contractor often handles salvage, which may be stored inside or outside. If explosives are stored on premises, there is potential for a severe loss from fire and explosion unless there are superior controls on inventory and access to the explosives' storage areas. Storage must be in accordance with all state and federal regulations.
Local fire departments must be notified and a plan of control and evacuation should be in place. Explosives are target items for thieves and terrorists. Appropriate security measures must be in place including lighting and physical barriers to prevent unauthorized access. Thorough background checks by the ATF or Homeland Security should be done on every employee.
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. All items should be physically inventoried on a regular basis to prevent theft. If there are explosives, a procedure must be in place to monitor who has access to the explosives and to record all activities.
Inland marine exposures include accounts receivable if the contractor bills customers for services, contractors' equipment, goods in transit, and valuable papers and records for customers', regulators', and vendors' information. If explosives or salvage is transported, drivers must have a Haz-Mat license and be experienced in transport. The vehicle must be properly marked. A variety of drilling equipment is necessary to set the explosives.
The insured may own materials used to set up fences and blockades. If the contractor is responsible for removal of the debris, additional types of equipment may be needed, such as front-end loaders. Equipment on the site may be dropped from heights, strike utility piping, or wires either underground or within the building being demolished. When jobsites are in rural areas or on uneven ground, collision or overturn can occur. Any type of equipment may be damaged or destroyed during blasting operations.
Some equipment, such as cranes, may be leased, rented, or borrowed for a particular job. If equipment, machinery, tools, or supplies are left at jobsites, they may be susceptible to theft and vandalism. Equipment should be secured and rendered inoperable when not in use. Detonating devices, as well as explosives, may be a target for thieves.
Commercial auto exposures are high. Workers, equipment and supplies are regularly transported to and from jobsites. The transport of explosives demands extreme care by drivers due to the potential for fire, explosion, collision, overturn, and theft. Drivers should have Haz-Mat licenses and be fully aware of dangers involved with transporting explosives in populated areas. Transport of any salvage is difficult and requires proper loading to prevent overturn or overflow.
The absence of detailed training and procedures in the event of overturn or spill may indicate a serious morale hazard. All drivers must have appropriate licenses and acceptable MVRs. Vehicles must be maintained and the records kept in a central location.
As a NY demolition contractor, it's important to make sure that you are properly protected from the financial that could arise as a result of the many liabilities that your business faces. To find out more about what type of insurance policies you should carry, how much coverage you should invest in, and if there are any specialized policies that are designed specifically for demolition contractors, speak to a reputable insurance broker.
New York Economic Data And Commercial Insurance Requirements
The State of New York is famed for industry, particularly Manhattan and the surrounding areas. As such, it's no wonder why so many entrepreneurs look to do business in this state.
If you are thinking about starting up a business in NY, it's important for you to have an understanding of the status of the state, regarding its economy. It's also important to know about the insurance requirements for business owners in the Empire state.
Below, we offer a brief overview of New York's economic status, as well as the types of insurance policies business owners are legally required to carry, and policies that they should consider investing in.
The Economic Status Of New York State
While the economy is growing in the State of New York, it is lagging behind other states, in terms of growth. Overall, more jobs have been added in this state in recent years. In 2018, it is expected that this trend in job growth will continue; however, it will likely be at a slower pace than previous years.
If you are thinking about doing business in the Empire State, one of the best industries to consider is finance. It is predicted that this sector will contribute largely to the economy in 2022, as well as in the coming years. Healthcare services and education are also expected to see growth, as are the transportation industry, and professional and business services.
Insurance Requirements For Business Owners In NY
The New York State Department of Financial Services regulates insurance in the Empire State. Organizations that employ a staff of part-time or full-time workers that are either hourly or salaried are required to carry workers' compensation insurance. This type of insurance is required, no matter what size your staff is; even if it only consists of one W2 salaried person. You must also carry NY commercial auto insurance if you are using a vehicle to conduct any business affairs.
While there are no mandates surrounding commercial liability insurance, business owners in New York would be wise to invest in this type of coverage. Should a client or a contractor sue you for an accident or injury that happens at your place of work, or if a client claims you damaged his or her property, commercial liability insurance will protect you from having to pay the cost of legal fees and any settlements that may be awarded out of your own pocket.
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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Borough Park, Bronx Park and Fordham, Brooklyn, Bushwick and Williamsburg, Canarsie and Flatlands, Central Brooklyn, Central Harlem, Central Queens, Chelsea and Clinton, East Harlem, East New York and New Lots, Flatbush, Gramercy Park and Murray Hill, Greenpoint, Greenwich Village and Soho, High Bridge and Morrisania, Hunts Point and Mott Haven, Inwood and Washington Heights, Jamaica, Kingsbridge and Riverdale, Lower East Side, Lower Manhattan, Manhattan, Mid-Island, North Queens, Northeast Bronx, Northeast Queens, Northwest Brooklyn, Northwest Queens, Port Richmond, Queens, Rockaways, South Shore, Southeast Bronx, Southeast Queens, Southern Brooklyn, Southwest Brooklyn, Southwest Queens, Stapleton and St. George, Staten Island, Sunset Park, Upper East Side, Upper West Side, West Central Queens, West Queens and all other NY cities & New York counties near me in The Empire State.
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