Some might say that as the economy goes, so goes the construction industry. For example, the greater the number of building cranes that are visible in a city’s skyline, the more likely it is that the economy is strong and that the construction industry is booming. Similarly, an increase in vehicles hauling building materials and related components along streets and highways can be indicative of a vibrant construction industry.
A booming construction industry will likely motivate individuals possessing a construction background and an entrepreneurial spirit to start their own construction business in the hopes of capitalizing on the industry’s potential profitability. Starting and running a construction business entails key steps, including development of a business plan, obtaining requisite licensing and permits, hiring employees and negotiating contracts with property owners and subcontractors. However, obtaining insurance is perhaps the most crucial step for a construction startup. Construction projects are replete with potential risks from which construction businesses need to protect themselves. Faulty design or workmanship, physical damage to the project and injuries to employees or third parties are just some of the risks that construction businesses may face. A well-crafted and comprehensive insurance program will protect a construction business against such risks.
Reprinted courtesy of Gary A. Barrera, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.