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Small Business Insurance 101: Construction

Updated: Sep 20

Construction and Insurance


Home improvement is a trend that looks like it is here to stay in the US. With shows like Fixer Upper and Love it or List it, people are becoming more inclined to take on construction jobs for their home. The popularity in the construction industry is rising and a need for affordable and reliable work to be done is more necessary than ever. Large construction companies are not able to dedicate the time and amount of detail required for smaller projects. Small businesses have many advantages, but they also have many liabilities. That is why insurance is so critical.


Entrepreneurship can be a risk, but is definitely worth the potential reward. Following the proper steps through insurance and financial preparation can eliminate risks along the way. Make sure to keep in mind the amount of funding required when opening a construction company. There are a lot of overhead costs in construction that are most likely not present in other industries. Deciding to open your own small construction business is exciting and tricky. When taking a risk, you need to make sure you are protected. That means taking the time to find the small business insurance that is right for your needs. This article will help to set you up for success.


Costs of Small Construction Businesses


Overhead cost is one of the most important things to consider when opening your small construction business. Financing any business can be difficult, but construction businesses have specific financial needs. If you are not in the financial situation to fund your company through income or savings, look into construction loans to start out. The best and first step you should make is attempting a bank loan or a loan through the Small Business Administration. At Insuravita, we know there are several costs that can derail your small business plans.


Picking an affordable insurance plan that covers your business and niche needs will help you avoid expensive missteps.

Once your loan or funding is secured, the next step is to look into the purchase or long term rental of necessary equipment.


The popular avenue for construction company owners is to subcontract equipment and workers to be more cost-effective. The other option is to purchase your equipment like a bulldozer, tractor, or dump truck. A van or truck is almost always necessary to take on heavy jobs. Subcontracting equipment or workers means that they have a niche ability or license to complete a project that may be out of your bandwidth. This is usually a cost-effective solution. Once you have this equipment, it’s time to insure it. Get more information here.


Small Business Insurance and Employees


One of the hardest parts of owning a business is finding talent to work for you. You are looking for someone who has shared values in representing your brand well and has all the necessary skills. You are also going to look for someone who is always willing to learn. The construction business is always changing and new trends in the renovation are constantly moving, thanks to HGTV. There are a few tactics that successful small construction business owners do to make sure they find and retain the best talent.

Specialized job boards online or even trade schools are great places to find new and skilled talent.


Another great tip is to use a recruiting firm to verify the skills and experience of a potential hire. After finding the right team, make sure to register for the appropriate tax forms and employee certification forms like an EIN (employee identification number). Register your employees through OSHA and make sure you have applied for all insurance prior to starting the hiring process. Construction is a more dangerous line of work than most. Remember, to protect yourself and protect your company’s future. Life insurance might be a good idea. Check out your options here and here.


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