Nothing is written in stone, especially when it comes to the way states interpret liability insurance. Does your construction business operate in several states? Are you thinking of expanding beyond your borders? Understanding the different interpretations of business insurance can help you lower the risk of being covered in one state, but held responsible in another.
Knowing how your insurance coverage translates into other jurisdictions is just good business. It’s a way to stay proactive instead of reactive. There are several coverage questions every construction firm should consider when it comes to operating in multi-states.
4 Questions to Ask to Avoid Multi-State Insurance Gaps
Does your bodily injury and property damage liability insurance cover the same incidents state to state?
Whether you’re a housing contractor or the head of a demolition team, knowing what your insurance covers in each state can help you stay away from paying expensive medical bills or equipment repairs out of pocket. Some jurisdictions might weigh the same incidents differently, so it is important to understand these differences if you want to mitigate your risks.
What business risk exclusions can you claim?
Every job has a risk or two, but construction sites have to be prepared for a plethora. Some risks are higher during the middle of a project, while others can happen when your crew is putting the finishing touches on a job. Either way, depending on the state, your liability coverage may take care of one group, but not the other.
What have the courts been debating?
Look at some cases that have gone to court and examine the rulings. Thinking ahead at what might occur can save you a mountain in out-of-pocket costs and legal fees. Keeping your employees safe and your job site secure should be your number one objective. Keeping them covered not only protects you, it protects them.
What are the state laws for personal and advertising injury liability?
Sometimes, unfortunately, you need to protect yourself against wrongful prosecution. That’s where personal and advertising injury liability comes into play. However, like with other forms of insurance, different jurisdictions might view these incidents differently. Adjusting your coverage can prevent these issues from halting your construction projects and putting your work on the line.
Whether you’re branching out nationally or a construction company looking to bid on one job across the state line, not understanding the business insurance climate could result in staggering fees and fines. Talking with your insurance agent can help you beat these issues head-on. Once your insurance questions are settled, it’s time to move on to staffing. CCS Construction Staffing has a handle on the complex staffing, payroll and insurance situations than can arise with multi-state firms. Give us a call for more information!