Minnesota Cement Contractors Insurance Policy Information
Minnesota 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 MN 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 Minnesota 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 MN cement contractors carry? Find the answers to these questions below.
Minnesota 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 Minnesota 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 Minnesota 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.
MN 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.
MN Cement Contractor Insurance
To find out exactly what type of Minnesota cement contractors insurance coverage - and how much - you should invest in, speak to an experienced insurance broker.
Minnesota Economic Data And Business Insurance Regulations
If you're an entrepreneur who is thinking about starting a business or expanding your company by opening a division in a new location, you know that there are a number of factors you have to consider. One of the most crucial elements business owners must take into consideration is the conditions of the location they are interested in; the area needs to offer conditions that are favorable for the business in order for the operation to thrive. A suitable target demographic and a healthy labor market are just some of the elements that indicate whether or not a business will thrive.
For business owners who have Minnesota in mind as their base, below, we've highlighted key details that suggest whether or not the Land of 10,000 Lakes offers favorable conditions for business owners. We also discuss the forms of commercial insurance that businesses are required to carry in the state.
Economic Trends For Business Owners in Minnesota
The unemployment rate of a state is a good indication of whether or not a state is suitable for business operations, as it provides insight into the labor market. According to the Bureau of Labor Statistics, as of May 2019, the rate of unemployment in The Gopher State was 3.3 percent, while the national average was 3.6 percent. While there has been a slight increase from 2018 (0.5 percent from June 2018 to May of 2019), the rate still indicates that the labor market in the state is favorable, which is a good sign for entrepreneurs.
Anywhere throughout the North State offers suitable conditions for businesses; however, there are some areas that are particularly ideal. These areas either large cities or areas that surround the state's largest cities, including:
- Eden Prairie
- Golden Valley
- Little Canada
- Mendota Heights
- St. Paul
- Thief River Falls
Certain industries do better than others in MN, and businesses that are centered on these industries have a greater chance of achieving success. The leading industries within the state include:
- Agriculture and forestry
- Hospitality and tourism
- Information technology
- Sustainable energy (specifically wind power)
Commercial Insurance Regulations For Businesses In Minnesota
The Minnesota Department of Commerce regulates insurance in Minnesota. Commercial insurance is designed to provide business owners and the individuals they associate with (employees, customers, and vendors) from a multitude of risks. To ensure proper protection for all, companies are required to carry the following commercial insurance policies in The North Star State:
- Workers' compensation insurance, which provides coverage for work-related injuries and illnesses that employees may sustain.
Business that use vehicles for business-related purposes over a certain weight, must also carry commercial auto insurance, and any company that sells or otherwise distributes alcohol must carry liquor liability coverage.
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 Minnesota Cement Contractors insurance quote in Albert Lea, Alexandria, Andover, Anoka, Apple Valley, Arden Hills, Austin, Bemidji, Big Lake city, Blaine, Bloomington, Brainerd, Brooklyn Center, Brooklyn Park, Buffalo, Burnsville, Champlin, Chanhassen, Chaska, Cloquet, Columbia Heights, Coon Rapids, Cottage Grove, Crystal, Duluth, Eagan, East Bethel, Eden Prairie, Edina, Elk River, Fairmont, Faribault, Farmington, Fergus Falls, Forest Lake, Fridley, Golden Valley, Grand Rapids, Ham Lake, Hastings, Hermantown, Hibbing, Hopkins, Hugo, Hutchinson, Inver Grove Heights, Lakeville, Lino Lakes, Little Canada, Mankato, Maple Grove, Maplewood, Marshall, Mendota Heights, Minneapolis, Minnetonka, Monticello, Moorhead, Mound, Mounds View, New Brighton, New Hope, New Ulm, North Branch, North Mankato, North St. Paul, Northfield, Oakdale, Otsego, Owatonna, Plymouth, Prior Lake, Ramsey, Red Wing, Richfield, Robbinsdale, Rochester, Rogers, Rosemount, Roseville, Sartell, Sauk Rapids, Savage, Shakopee, Shoreview, South St. Paul, St. Cloud, St. Louis Park, St. Michael, St. Paul, St. Peter, Stillwater, Vadnais Heights, Waconia, West St. Paul, White Bear Lake, Willmar, Winona, Woodbury, Worthington and all other cities in MN - The North Star State.
Also learn about Minnesota small business insurance requirements for general liability, business property, commercial auto & workers compensation including MN business insurance costs. Call us (612) 808-9866.