Construction Business Insurance: The Ultimate Guide & What You Need to Know in Kansas

Kansas, the Sunflower State, holds a unique position in the U.S. construction industry, with its diverse geographical offerings ranging from flat plains to steep hills. For the construction company owners and managers in Kansas, this diversity is both an opportunity and a challenge. 

However, operating in this state introduces a myriad of risks, from weather-related damages such as tornadoes to potential claims of property damage or bodily injury occurring during construction. This makes it imperative for these companies to have a comprehensive construction company insurance plan in place. 

We Have the Best Construction Company Insurance Plans in Kansas

At Winn Insurance Group, we understand the unique challenges that Kansas construction companies face. Our team of qualified agents specializes in providing tailored commercial insurance plans to meet the needs of your business. We offer a variety of insurance coverage types, including general liability, builder’s risk, and property damage coverage. 

Our dedicated agents will work with you to identify the right policy for your business, taking into account the size and scope of your construction projects as well as any additional risks or exposures. We also provide our clients with the support they need to manage claims and navigate the complexities of filing a claim with their insurance provider. 

At Winn Insurance Group, we believe that all businesses deserve access to quality insurance solutions. Contact us today to find out more about our construction company insurance plans and how we can help your Kansas business stay safe. 

Who Needs Construction Company Insurance? 

Construction company insurance is not just a necessity for businesses directly involved in building homes or commercial properties. The following are examples of businesses that may greatly benefit from construction company insurance:

• General Contractors
• Subcontractors
• Construction Consultants
• Building Materials Suppliers
• Architectural Firms
• Engineering Companies
• Landscapers
• Plumbing Companies
• Electrical Contractors
• Masonry Contractors
• Painting Companies
• HVAC Service Providers
• Flooring Companies
• Roofing Specialists
• Excavation Contractors

Other businesses that provide services to construction projects may also be at risk and should consider purchasing a comprehensive insurance policy. 

Commercial General Liability Insurance for Kansas Construction Companies 

Commercial General Liability Insurance is a foundational component of any construction company's risk management strategy. This broad insurance coverage is designed to protect your business from various liability claims, including bodily injury, property damage, and personal injury. With this insurance, construction companies in Kansas can focus on executing their projects, knowing that they're protected against the financial implications of potential lawsuits and claims.

Here are some of the key protection features offered by Commercial General Liability Insurance:

1. Bodily Injury Liability: Covers expenses related to injuries that someone sustains on your business premises or as a direct result of your operations.
2. Property Damage Liability: Covers costs associated with damage to property owned by others, which your business might cause in the course of its operations.
3. Personal and Advertising Injury: Provides protection against claims of slander, libel, copyright infringement, and other personal or advertising injuries.
4. Medical Payments: Covers medical costs if someone is injured on your business premises or due to your operations, regardless of who is at fault.
5. Legal Defense and Judgments: Covers legal fees, settlements, and court judgments up to your policy's limit.

General Liability Insurance is essential for any construction project, regardless of size and scope. Without this coverage, a business could be exposed to severe financial losses due to lawsuits or claims stemming from their operations. 

Builders Risk Insurance

Builders' Risk Insurance is another critical type of coverage for construction businesses. This specialized type of property insurance covers a project under construction against damage or losses due to incidents like fire, vandalism, or natural disasters.

It's specifically designed to protect the unique risks associated with the ever-changing nature of a construction site. The insurance typically covers the building materials, both on-site and in transit, the structure itself as it's being built, and may even cover temporary structures like scaffolding.

Choosing the right Builders Risk Insurance policy involves a careful evaluation of your construction project’s specific needs. Variables such as the project's size, location, construction type, and duration all factor into the type and amount of coverage needed.

For example, a high-rise construction project in a hurricane-prone area will likely require different insurance considerations than a small residential build in a low-risk area. In any scenario, having a robust Builders Risk Insurance policy is a crucial step in mitigating the financial risks involved in construction.

Workers Compensation Insurance

The state of Kansas requires construction companies with at least one employee to provide Workers' Compensation Insurance. This coverage is designed to protect workers in the event of a work-related injury or illness, providing financial assistance for medical and rehabilitation costs, as well as wage replacement while an employee is unable to work due to their injury or illness.

Workers' compensation insurance premiums typically depend on factors such as the size of the business, the type of work being done, and the company's safety record. It is important for businesses to make sure that their workers' compensation coverage meets all of the state requirements in order to remain compliant.

Commercial Auto Insurance

While construction projects often require the use of specialized heavy machinery, many companies also rely on vehicles to transport materials and personnel. As such, it is important for businesses to have Commercial Auto Insurance in order to protect themselves and their employees from liability in the event of an accident while driving a company-owned or leased vehicle. 

Commercial auto insurance policies typically include coverage for physical damages to the vehicle, as well as liability coverage in case of an accident. Depending on the type of work and vehicles being used, additional insurance coverages beyond the minimum liability requirement may be required. It is important to speak with an insurance professional in order to determine the specific coverages needed for your construction business. 

Professional Liability Insurance

Kansas construction businesses are exposed to a great deal of risk, and it is important for them to have Professional Liability Insurance in order to protect themselves from any losses related to the services they provide. This type of coverage can help protect against claims arising from errors or omissions, as well as from negligence. 

Professional Liability Insurance typically covers the cost of defending against claims, as well as any damages that may be awarded. Besides covering professional services, this type of insurance may also provide coverage for contractual liabilities. 

Commercial Property Insurance

If your Kansas construction business owns or leases any property, it is important to have Property Insurance in order to protect the value of those assets. This type of coverage typically covers losses due to fires, natural hazards, theft, or other causes of damage. 

Property Insurance can also provide coverage for business interruption losses due to any covered event. This type of insurance can be tailored to cover a variety of types of property, such as buildings, equipment, tools or materials.

Commercial Umbrella Insurance

Umbrella Insurance will provide an extra layer of liability protection for your Kansas construction business by covering costs that go beyond your other liability coverage limits. It functions as a safety net, kicking in when the underlying liability policies such as General Liability, Auto Liability, or Workers' Compensation reach their limit. An Umbrella policy can protect your business from financially devastating lawsuits that could potentially exceed your primary policy limits.

In an industry as risky as construction, having an Umbrella Insurance policy is often considered a smart business move. This type of coverage is particularly beneficial in the event of significant property damage, serious physical injury, or claims of slander or libel that your business could be held responsible for. 

Equipment Insurance

Equipment Insurance is an important type of specialty coverage for many Kansas businesses in the construction industry. This policy will provide protection for equipment used in both mobile and stationary applications, helping you avoid financial losses due to accidental damage or breakdown. 

Equipment Insurance can cover a variety of items such as tools, machinery, cranes, and other heavy-lifting equipment as well as vehicles used for transporting materials. It can also include coverage for any attached accessories, such as hydraulic hoses or cables. This type of insurance is essential to help protect your business from unexpected costs associated with repair and replacement if an accident were to occur. 

Employment Practices Liability Insurance (EPLI)

For Kansas businesses in the construction industry, Employment Practices Liability Insurance can provide protection from losses due to wrongful termination, harassment claims, discrimination allegations and other labor law violations. This type of coverage is especially important as it can protect your business against legal costs associated with employee lawsuits. EPLI can also cover third-party claims related to employment practices, such as allegations of negligence or breach of contract. 

Directors and Officers Liability Insurance

Directors and Officers Liability Insurance is essential for Kansas businesses in the construction industry as it provides protection from financial losses due to wrongful acts committed by members of your board of directors or executive management team. This type of coverage is designed to cover legal costs, settlements, and judgments if a lawsuit is filed against any director or officer for their decisions or actions while serving on the board. It also includes coverage for any related acts of mismanagement or breach of fiduciary duty. 

Get a Custom Insurance Quote for Your Kansas Construction Business 

At Winn Insurance Group, we understand that each business in the construction industry is unique and requires custom insurance solutions to meet their individual needs. With access to some of the top-rated insurers in the state, you can be sure that you’re getting the best coverage for your business. Contact our office today to get a free, no-obligation quote and learn more about how we can help you find the right insurance solutions for your specific needs.