Working in the concrete industry can expose your company to many risks. Cement manufacturers and contractors could be severely affected by unpredictable events such as auto accidents, unintentional injuries or property damage, or fires. Having the right business insurance in place can give your company the financial security it needs to continue operating in the event of a catastrophe.

What insurance coverage do I need as a concrete contractor?

While there are many types of coverage for companies to consider, these insurance policies are particularly important for concrete businesses to consider:

General Liability Insurance

General liability insurance can protect your company from claims of third-party bodily injury or property damage. This is an important coverage for concrete businesses to obtain, and many clients or general contractors will require you to carry this coverage. 

Even if you use safety barriers and signs to protect the public, there’s a possibility that people will stumble over equipment, debris, or uneven ground at job sites and injure themselves. In addition, heavy machinery can damage surrounding property or cause injuries. You could be sued for damages if one of your employees inadvertently damages someone else’s property or causes an injury. In these cases, general liability insurance can cover legal fees, judgments, and settlements, as well as any medical payments. 

General liability insurance also provides coverage for your completed work. If cement cracks or fails, it could damage property or cause someone to be injured. General liability protects you from claims of property damage or injuries that take place away from your business’s premises and are caused by your work after it has been completed. However, it’s important to note that products and completed operations coverage does not cover damage to your product or completed work itself; it only applies if the completed work causes damage to a customer’s other property.

Examples:

• Bodily injury: A passerby trips over a trowel that one of your employees left out while working on a cement wall. The person falls and suffers a fractured wrist. Your general liability policy would cover medical expenses, as well as any legal fees if the injured person sues.
• Products and completed operations: Several months after you install cement stairs at a business park, the cement begins to crack. Someone trips on the cracks and falls, suffering a broken hip. Your general liability insurance would cover medical and legal expenses. 

Commercial Property Insurance

Commercial property insurance protects the value of your business’s property. If an unexpected disaster damages or destroys rented or owned space, tools, supplies, equipment, or other property, commercial property will cover the loss. 

Concrete businesses could have a particularly high risk of property damage since their work may involve the use of heat and flammable materials, causing a fire hazard. Other perils such as windstorms, hail, vandalism, and water damage could affect your business, especially if equipment and supplies are stored outside. Commercial property insurance can provide financial support to help you replace, repair, or rebuild business property that is damaged by these common perils.

Example:

• A fire breaks out on your premises and damages your building and equipment. Your commercial property insurance would cover the loss.

Inland Marine Insurance

Inland marine insurance provides financial protection for your business property that does not remain at a fixed location and is not covered by a standard commercial property insurance policy. Concrete companies typically use construction equipment and tools, which could be damaged in transit or while at a job site; inland marine insurance will cover this property.

For contractors and subcontractors, installation floaters are a common type of inland marine insurance used to cover materials and equipment for installation projects. These policies are specifically designed to cover your business while building or renovations are in progress. Installation floaters cover materials, supplies, and equipment while in transit, waiting to be installed, and during the installation process. Coverage plans can cover a specific project or projects over a period of time.

Example:

• A severe windstorm damages valuable equipment that you had stored at a job site. Inland marine insurance would cover the loss.

Commercial Auto Insurance

Commercial auto insurance is both a legal requirement and a crucial coverage for cement companies that own vehicles—cement trucks are very heavy and can cause major damage if they’re involved in an accident. It’s necessary to make sure that your vehicles are properly maintained and your drivers have good records, as well as ensuring that you have sufficient commercial auto insurance coverage.

If one of your employees is driving a company vehicle and causes an accident, your commercial auto insurance will pay for any resulting third-party bodily injury, property damage, or pollution cleanup. Commercial auto insurance also covers the value of the vehicle itself if it’s damaged by a collision or another peril, like a falling object or theft.

Example:

• One of your cement trucks skids on ice and collides with the vehicle in front of it, injuring its driver. Commercial auto insurance would provide funds to cover medical costs for the other driver and damages to both vehicles. 

Workers’ Compensation Insurance

Workers’ compensation insurance is legally required in almost all states, and it’s particularly important for concrete companies. Working with concrete is physically demanding, and employees could suffer many common injuries resulting from heavy lifting and working with machinery, including back strain, crush injuries, eye or lung damage from dust or sand, and hearing damage from noisy equipment. 

In the event of a work-related injury or illness, workers’ comp will provide funds for employees’ medical expenses and a portion of lost income if they are unable to earn their usual wages. Workers’ comp also provides financial benefits to surviving dependents if an employee dies in a work-related accident.

Example:

• One of your employees develops a severe back injury after lifting heavy equipment on a job site. Workers’ comp would pay for her medical bills and a portion of lost income while she recovers and is unable to work.

Pollution Liability Insurance

Pollution liability insurance covers bodily injury, property damage, and cleanup costs caused by pollutants that are released in the course of your company’s work. Pollution liability issues for concrete companies can arise from the use of asphalt and cement, and waste generated from machinery can also cause environmental damage. If you are held liable for causing pollution-related damage, you may be required to pay for costly cleanup costs and fines. Pollution liability insurance will provide financial support if your company causes environmental damage.

Example:

• A concrete mixer leaks oil that contaminates the area. Pollution liability insurance would cover cleanup costs and legal fees. 

Equipment Breakdown Insurance

Concrete businesses typically rely on concrete mixers and other equipment. If this equipment breaks down, repairs could be costly and time-consuming, and your projects could be delayed as a result. Since commercial property insurance generally only covers damage caused by external perils such as a fire or storm, equipment breakdown insurance is necessary if you want coverage for situations where a piece of equipment breaks down due to something internal, like a mechanical failure. In these cases, equipment breakdown insurance can provide funds to repair or replace damaged equipment and cover lost business income while the equipment is out of commission.

Example:

• Your concrete mixer breaks down on a worksite and your project is delayed while you wait for a replacement part. Your equipment breakdown insurance would pay for repairs and reimburse you for lost income.

Commercial Crime Insurance

Commercial crime insurance provides protection from financial losses related to crimes such as theft, burglary, robbery, forgery, and fraud. It’s important to note that commercial property insurance may provide limited coverage for losses caused by third-party crime and does not cover employee dishonesty. Employee crime is a risk area for concrete businesses, as fraud and embezzlement are common issues in the construction industry. Commercial crime insurance can provide protection for these crime-related losses.

Example:

• An employee has been billing customers for more than they actually owe and pocketing the difference. Over time this adds up to tens of thousands of dollars that your customers are owed. Your commercial crime insurance would cover the loss.

Additional Coverages

• A business owner’s policy combines general liability, property, business income, and extra expense coverage into a single package. For qualifying small and midsize concrete businesses, this type of insurance can help save money on premiums while obtaining a wide range of coverage.
• Business income coverage will reimburse you for lost income and operating expenses if your business is unable to operate due to a covered reason, such as fire, storm damage, or other property damage.
• Employment practices liability insurance protects your business against lawsuits by prospective, current, or former employees accusing your business of wrongful treatment such as discrimination, harassment, or other employment-related issues.

Pricing and Quotes

Pricing for concrete contractors insurance will vary based on the type of insurance coverage and the risk profile of your business. Insurers consider factors such as:

• Business size
• Industry
• Location
• Number of employees
• Claims history

Businesses with higher risks will have higher premiums than those deemed lower risk. For example, a concrete contractor with a history of frequent claims will face higher premiums. Premiums also rise as you increase the limits of insurance. Different insurance companies have different models for rating risks, so it is worth comparing pricing across different insurers.

In order to get an accurate estimate on pricing, it’s best to get a quote from a reputable insurance company. Below we’ve highlighted a few of our trusted partners who offer coverage for concrete businesses:

Provider	General Liability	Professional Liability	Business Owner's Policy
Embroker	??	??	??
CoverageSmith	??	??	??
CoverWallet	??	??	??
Hiscox	??	??	??
Thimble	??	??	??

Final Word

While you are hard at work building and growing your business, locking down the right insurance can help you protect your investment. Being properly insured can aid in winning new business by making your business look more legitimate in the eyes of your potential customers. A costly accident or lawsuit could have a major impact on your company’s finances. Ensuring that your company has a wide range of insurance coverage can give you, your employees, and your clients peace of mind, knowing that if an unexpected disaster occurs, your company will be financially protected.