Fence contractors face a variety of risks that can lead to serious challenges for their businesses. From injuries caused by sharp materials to legal disputes over improperly installed fencing, having the right insurance coverage is essential. Thomas McMillan, a commercial lines staff underwriter at Central Insurance, recently discussed these risks and the insurance options available to help protect contractors.
Fence contractors deal with different exposures depending on the materials they use and the types of projects they undertake. Simple mistakes, like a miscalculated measurement or a fence post that isn’t secured properly, can lead to injuries, property damage, or costly lawsuits. For instance, if a fence collapses because it wasn’t installed correctly, the contractor may be responsible for repairing the damage, which could include landscaping or irrigation systems.
One of the most common issues is installation mistakes. If a fence is not built according to standards, it could lead to significant financial losses for the contractor. McMillan pointed out that misreading property lines or using incorrect materials can result in expensive repairs and legal troubles.
Another major concern is third-party injuries. Unsecured sections of a fence or sharp edges can pose serious risks to homeowners, pets, and passersby. If someone is injured because of a contractor’s negligence, it could lead to a general liability claim.
On-site safety is also critical. Fencing projects often occur in residential areas where open holes or unsecured tools can endanger workers and visitors. This increases the contractor’s liability risk significantly.
Transporting materials adds another layer of risk. Fencing materials are often bulky, and if they are not secured properly while being transported, they can fall and cause accidents. McMillan emphasized the importance of having commercial auto coverage to protect against these potential damages.
The risk of theft is also a concern for contractors. Tools left on job sites, especially valuable equipment, can be targets for thieves. Losing these tools can delay projects and hurt the contractor’s bottom line.
Given these risks, McMillan recommends several key insurance coverages for fence contractors. General liability insurance is a must, as it protects against claims of bodily injury or property damage. A business auto policy is also important for covering accidents involving company vehicles.
Inland marine insurance can protect tools and equipment from theft and vandalism, while errors and omissions (E&O) coverage can help if a mistake leads to financial loss. Workers’ compensation insurance is crucial for covering medical expenses and lost wages if employees are injured on the job. Lastly, having coverage for completed operations ensures that contractors are protected even after a job is finished.
Central Insurance aims to provide tailored coverage for fence contractors, recognizing the unique challenges they face. Their underwriters specialize in construction risks, working closely with contractors to create insurance strategies that fit their needs. With the right coverage, fence contractors can protect their businesses and maintain their reputation in the industry.