In the construction industry, certain types of work are considered high-risk due to the inherent dangers and potential for accidents. Despite the risks, insurance providers still offer coverage for these projects, although they come with higher premiums and specialized policies tailored to mitigate the risks. Having the right insurance is critical to protecting your business, your workers, and your clients. Below, we’ll discuss some of the most common high-risk construction activities and what you need to know about insuring them.
1. Excavation and Trenching
Why It’s High-Risk: Excavation and trenching pose a variety of hazards, including cave-ins, machinery accidents, and the risk of striking underground utilities like gas or water lines.
Key Risks:
- Cave-ins and collapses
- Equipment accidents
- Hitting underground utilities
Insurance Considerations:
For excavation and trenching, contractors typically need a combination of general liability, workers’ compensation, and specialized excavation insurance. Coverage for damage to underground utilities is critical in these types of projects, as the cost of hitting an existing utility line can be substantial.
2. Roofing
Why It’s High-Risk: Roofing is among the most dangerous jobs in construction, primarily because it involves working at significant heights. Falls are one of the leading causes of injury and death in construction work.
Key Risks:
- Falls from roofs, ladders, or scaffolding
- Weather-related risks like rain and wind
- Structural damage or collapse
Insurance Considerations:
Roofing contractors need robust general liability coverage to handle injury claims, workers’ compensation to protect employees, and specialized roofing insurance to cover equipment damage and weather-related incidents.
3. Demolition
Why It’s High-Risk: The process of tearing down buildings involves significant hazards, including the risk of collapse, flying debris, and unintentional damage to nearby structures.
Key Risks:
- Structural collapses
- Flying debris
- Exposure to hazardous materials like asbestos
- Environmental contamination
Insurance Considerations:
Demolition contractors require several types of insurance, including pollution liability, general liability, and workers’ compensation. Due to the nature of demolition work, premiums for these policies are typically higher to reflect the increased risk.
4. Scaffolding Erection and Dismantling
Why It’s High-Risk: Scaffolding can collapse if not properly installed, and workers are often at risk of falling from significant heights during both the erection and dismantling stages.
Key Risks:
- Falls from heights
- Collapses due to improper assembly
- Equipment failures
Insurance Considerations:
Scaffolding companies need general liability insurance, workers’ compensation, and specialized scaffolding insurance. Coverage for falls, collapses, and equipment failures are vital in this line of work.
5. Electrical Work (High Voltage)
Why It’s High-Risk: High-voltage electrical work carries extreme risks, including electrocution, fires, and explosions, especially in large-scale industrial and commercial projects.
Key Risks:
- Electrocution
- Fires and burns
- Electrical explosions
Insurance Considerations:
Electrical contractors should invest in general liability, workers’ compensation, and specialized electrical work insurance to cover fire-related risks and equipment malfunctions. Premiums are generally higher for high-voltage projects due to the potential for catastrophic accidents.
6. Bridge and Highway Construction
Why It’s High-Risk: Working on bridges and highways involves the use of heavy machinery, working at heights, and exposure to ongoing traffic, which increases the likelihood of accidents.
Key Risks:
- Falls from heights
- Vehicle collisions
- Equipment malfunctions
- Structural failures
Insurance Considerations:
Contractors engaged in bridge and highway construction typically need builder’s risk insurance, general liability, workers’ compensation, and coverage for heavy equipment. Traffic-related incidents also require specialized traffic liability coverage.
7. Underground Utilities (Sewers, Water Lines, Gas Lines)
Why It’s High-Risk: Installing or repairing underground utilities comes with the dangers of trench collapses, utility strikes, and exposure to hazardous materials like gas or chemicals.
Key Risks:
- Trench collapses
- Striking existing utility lines
- Exposure to hazardous materials
Insurance Considerations:
Insurance for underground utility work should include general liability, workers’ compensation, and environmental liability to cover risks like trench collapses and utility line strikes.
8. Pile Driving
Why It’s High-Risk: Pile driving involves the use of heavy equipment to drive beams into the ground. This process can pose serious risks to workers and surrounding structures due to the impact forces involved.
Key Risks:
- Equipment accidents
- Structural damage to nearby properties
- Noise and vibration damage
Insurance Considerations:
Pile driving contractors need specialized coverage for vibration damage, general liability, and equipment insurance to mitigate the risks of equipment breakdowns and third-party damage.
9. Steel Erection
Why It’s High-Risk: Steel erection, often done at great heights, involves handling large steel components, increasing the risk of falls, structural collapses, and equipment accidents.
Key Risks:
- Falls from significant heights
- Dropped steel beams
- Structural failures
Insurance Considerations:
Contractors engaged in steel erection need comprehensive general liability coverage, workers’ compensation, and specialized equipment insurance to cover accidents involving heavy steel components.
10. Asbestos and Hazardous Material Removal
Why It’s High-Risk: Removing asbestos and other hazardous materials can lead to worker exposure and environmental contamination if not handled properly.
Key Risks:
- Exposure to asbestos or other toxic materials
- Improper containment leading to environmental hazards
- Health risks for workers
Insurance Considerations:
Asbestos and hazardous material removal contractors require pollution liability, environmental liability, and workers’ compensation to cover the extensive risks associated with this type of work.
11. Tower Crane Operations
Why It’s High-Risk: Tower cranes involve working at extreme heights with heavy loads, making crane collapse or dropped loads a significant concern.
Key Risks:
- Crane collapse
- Falling materials
- Equipment malfunction
Insurance Considerations:
Crane operators need specialized equipment insurance, general liability, and workers’ compensation to protect against the high risks associated with crane operations.
12. Marine Construction (Docks, Piers, Offshore Platforms)
Why It’s High-Risk: Marine construction, which takes place near or over water, introduces risks of drowning, equipment accidents, and environmental damage.
Key Risks:
- Drowning
- Falling into water
- Equipment malfunction
Insurance Considerations:
Marine construction companies should have marine liability insurance, pollution liability, and specialized marine equipment coverage to address the unique risks associated with working near water.
13. High-Rise Window Cleaning
Why It’s High-Risk: High-rise window cleaners often work suspended from great heights, increasing the potential for falls, equipment malfunctions, and weather-related incidents.
Key Risks:
- Falls from heights
- Equipment failure
- Wind and weather-related risks
Insurance Considerations:
High-rise window cleaning companies need general liability, workers’ compensation, and specialized insurance for high-rise operations to address the heightened risk of falls and equipment failure.
14. Roadway and Tunnel Boring
Why It’s High-Risk: Tunnel boring involves working underground with risks such as cave-ins, flooding, and exposure to hazardous gases.
Key Risks:
- Cave-ins
- Flooding
- Equipment breakdown
Insurance Considerations:
Tunnel boring contractors require environmental liability, general liability, and equipment breakdown insurance to cover the wide range of risks associated with underground work.
15. Blasting and Explosive Demolition
Why It’s High-Risk: Using explosives to demolish buildings or clear land introduces risks of unintended explosions, flying debris, and damage to surrounding structures.
Key Risks:
- Misfired explosions
- Flying debris
- Property damage
Insurance Considerations:
Blasting contractors need explosive liability insurance, general liability, and coverage for third-party property damage to ensure they are protected against the extreme risks associated with using explosives.
Conclusion: Protecting Your High-Risk Construction Business
High-risk construction activities require specialized insurance coverage tailored to the unique dangers involved. Insurers accept these projects but at higher premiums due to the potential for significant damage or injury. To protect your business, it’s crucial to have comprehensive insurance policies that cover general liability, workers’ compensation, pollution liability, and equipment-related risks.
Need insurance for your high-risk construction business? Contact Samuel Bennett at Island Insurance Group today!
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Island Insurance Group is here to help you find the right coverage to protect your business and your employees, ensuring peace of mind as you take on these challenging projects. Let us guide you through the process and tailor a plan that suits your specific needs.