As a demolition contractor, you’re responsible for helping society renew its buildings and get the best use out of its land. Before new structures can rise to take the place of the old, the existing structures must come down, and you’re an expert in demolishing buildings in a safe and efficient manner. Whether you use an excavator, wrecking ball, explosives, or other equipment, you know that demolition can be a hazardous occupation.

As a responsible contractor, you have a focus on safely completing your jobs. Having the right insurance for your demolition business is also a responsible, smart business decision. In the event that you injure someone or cause damage to others’ property in the course of doing business, insurance will protect your business financially from accidents that might occur.

What insurance coverage do I need as a demolition contractor?

Some of the most common coverages for demolition contractors are listed below, along with relevant examples of incidents that would trigger these coverages.

• Commercial General Liability Insurance protects your business if you physically injure another person or cause damage to someone else’s property. As demolition is a hazardous activity, most clients require demolition contractors to carry commercial general liability insurance in order to be hired.
  • Property Damage: Your demolition equipment damages a neighboring fence on accident.
  • Bodily Injury: Your demolition equipment injures a bystander walking near your construction site. They sue your business for medical expenses and lost wages from being unable to work.
• Workers’ Compensation Insurance provides funds for medical expenses and lost wages if one of your employees is injured or killed while on the job. Because demolition has a higher rate of injury than many other professions, it is very important for demolition contractors to have workers’ compensation coverage. In almost all states, workers’ compensation insurance is required for companies that have employees.
  • One of your employees is injured by excavation equipment while on a job site. Worker’s compensation insurance would cover this employee’s medical expenses and partial lost wages.
• Commercial Property Insurance provides protection for property that your business owns or is responsible for.
  • Mobile Equipment Insurance provides protection for mobile equipment that is commonly stored on client sites or outside of your business premises. This insurance protects your mobile equipment, such as loaders, excavators, and bulldozers, from theft and accidental damage from perils like fire, windstorm, and vehicle crashes.
    • You own an excavator that is temporarily stored at a demolition site. During a windstorm, a tree branch falls on your excavator and destroys it.
• Commercial Auto Insurance protects your business if you or one of your employees causes injury or damage to someone else while driving a business vehicle or while driving for business purposes. It also protects vehicles owned by your business from damage or theft. In some states, heavy mobile equipment that can be driven on public roads, such as dump trucks and bulldozers, are required to be covered under commercial auto liability insurance.
  • One of your employees is driving a bulldozer on a public road to a demolition site. On the way, the bulldozer crashes into another vehicle. The other driver is injured and sues your business.

How do I get demolition contractor insurance?

There are many factors to consider when purchasing insurance for your demolition business—from the financial strength of an insurer to the pricing that you’re offered. A solid insurance package for your demolition business will be fairly customized, as no two businesses are the same, so it is particularly important to select an insurance provider that can build custom coverage to fit your specific needs.

When selecting an insurance company, there are three main factors you should look at:

• The financial strength of the insurer
• Pricing
• Reputation for customer service

» Learn more about how to get demolition contractor insurance

Explosive Workers, Ordnance Handling Experts, and Blasters Industry Statistics

Employment and Wage Estimates for Demolition Contractors

Source data: Bureau of Labor Statistics, U.S. Department of Labor, Occupational Employment and Wages, Explosives Workers, Ordnance Handling Experts, and Blasters (2017)

Top Employment Industries for Demolition Contractors

Source data: Bureau of Labor Statistics, U.S. Department of Labor, Occupational Employment and Wages, Explosives Workers, Ordnance Handling Experts, and Blasters (2017)