Why do steel erection contractors need insurance?
Steel erection work is high stakes and dangerous, which makes insurance crucial. Business insurance can pay for medical bills if a worker falls from a structure, or legal expenses if a client sues over cost overruns or delays. State laws, contracts, and permits will often require proof of coverage.
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Steel erectors can save money by comparing customized quotes from top insurance companies.
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What types of insurance coverage do steel erection contractors need?
These insurance policies cover the top risks faced by steel erectors.
General liability insurance
Commercial general liability insurance covers third-party risks, such as a dropped tool that hits a car or a passerby. It's often required for licenses, permits, and contracts.
- Bodily injuries from accidents
- Damage to someone else's property
- Defamation lawsuits
Business owner's policy
A BOP bundles general liability and commercial property insurance at a discount. It's often the most cost-effective policy for steel erection contractors who have an office.
- Accidental bodily injuries
- Damage to someone else's property
- Stolen or damaged business property
Workers’ compensation insurance
Most states require workers' comp for steel erection companies that have employees. It also protects sole proprietors from work-related medical bills that health insurance might deny.
- Employee medical expenses
- Disability benefits and lost wages
- Lawsuits from employee injuries
Commercial auto insurance
This policy helps pay for legal fees and damages if a steel erection company's vehicle is involved in an accident. Most states require this coverage for vehicles owned by a business.
- Property damage caused by a work vehicle
- Medical costs if another person is injured
- Vehicle vandalism and theft
Contractor’s tools and equipment insurance
This type of coverage helps pay for repair or replacement of wrenches, cutters, drills, lifts, and other tools brought to jobsites. It's also called inland marine insurance.
- Hand tools and power tools
- Cranes and other lifting equipment
- Cutters and welding machines
Professional liability insurance
A professional liability insurance policy covers legal costs if a steel erector is sued for a professional mistake or oversight. It's also called errors and omissions insurance (E&O).
- Project delays
- Budget overruns
- Substandard materials or labor
How much does steel erectors insurance cost?
A general contractor who welds together pre-made frames for homes can expect to pay less for insurance than a company that constructs frames for skyscrapers.
Factors that can affect a contractor's insurance premiums include:
- Type of steel erection projects you do, such as cell towers or office buildings
- Value of your business property
- Business size, location, and revenue
- Types of insurance purchased
- Policy limits and deductibles
- Coverage options, such as an additional insured
- Claims history
How do I get steel erection insurance?
It’s easy to get commercial insurance and surety bonds as a steel erection contractor if you have your business information on hand. Our application will ask for basic facts about your company, such as revenue and number of employees. Small business owners can buy online and get a certificate of insurance with Insureon in three easy steps:
- Complete a free online application.
- Compare insurance quotes and choose your policies.
- Pay for your policies and download a certificate.
Insureon's licensed agents work with top-rated providers to find the right insurance solutions for your steel erection business, whether you work independently or with employees or subcontractors.
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FAQs about business insurance for steel erection contractors
Review answers to frequently asked questions about steel erection insurance requirements and licensing.
Do I need a license or permit for my steel erection business?
State laws and local regulations typically require steel erectors to have a license and permit. To obtain them, you usually need to be bonded and insured.
Steel erectors must submit building designs and site preparation plans for approval, and comply with safety programs mandated by the Occupational Safety and Health Administration (OSHA).
Here are several examples of what you might need:
- Business license. To form a business, you'll need to get a business license and register with your local government.
- Contractor's license. In most states, you'll need a contractor's license to construct steel structures. You'll likely need to be a certain age, have a specific amount of experience, pass an exam, pay a fee, and show proof of liability coverage or a bond.
- Building permit. Steel erectors will need a permit from their local building and zoning department or state agency before they can begin a project.
- Additional permits. You might also need a permit for work that involves scaffolding, hazardous materials, equipment that releases pollutants, or excavation, all depending on your local regulations.
Even when it's not required, a license or certification in structural steel erection can help elevate your business above the competition when trying to get a contract or win a bid. The general contractor or project owner may also have their own requirements.
For example, you could get trained as a Certified Erector by the American Institute of Steel Construction (AISC) or a Steel Erection Specialist (SES) by the National Association of Safety Professionals (NASP).
Why do steel erection contractors need business interruption insurance?
Constructing steel frameworks requires a tremendous investment in time and money. These projects are also vulnerable to unexpected shutdowns from incidents such as a fire, storm, or vandalism at a construction site.
If your business is forced to halt operations temporarily due to a fire or other covered property claim, business interruption insurance, also called business income insurance, can cover your financial losses.
That might include:
- Lost profits
- Employee wages
- Rent or mortgage payments
- Leased equipment
- Temporary relocation
- Other day-to-day operating expenses
Because steel erectors have high operating costs and projects that can take a long time to complete, this policy provides essential coverage. You can usually add it to your commercial property insurance or business owner's policy.
What other types of insurance do steel erection contractors need?
Steel erectors often rely on other types of construction insurance as part of a comprehensive risk management strategy:
- Builder's risk insurance provides financial protection for a structure in progress and materials at a construction site in the event of theft or damage from a fire or storm.
- Commercial property insurance covers your office and its contents, including computers, furniture, and equipment stored at your business address. If you don't have an office, you can buy business personal property (BPP) coverage to protect the items that belong to your business instead.
- Commercial umbrella insurance activates to provide coverage when your underlying general liability insurance, commercial auto insurance, or employer's liability insurance policy reaches the limit on a claim.
Our agents can help you find the right insurance program for your unique risks. Get peace of mind with coverage that fits your business needs at an affordable price.