Insurance for demolition contractors
Demolishing and tearing down buildings and other structures, doing interior demolitions, or deconstructing buildings is necessary to work to revitalize any community, but it’s also fraught with risks ranging from pollution exposure to third-party bodily injury and property damage. Insurance for demolition contractors can help provide financial coverage for risks common to this industry.
What is demolition insurance?
Demolition insurance also called wrecking insurance or bulldozing insurance, is a customized policy that’s designed to safeguard demolition and deconstruction contractors and wrecking operations by providing financial coverage for common risks such as third-party bodily injury and property damage claims or lawsuits.
What does it cover?
Tearing down buildings presents a high risk of third-party injuries and property damage. Therefore, it is important to have insurance coverage specifically designed for the risks you encounter and the equipment you own. A comprehensive demolition insurance policy typically includes the following coverages:
- Commercial General Liability (CGL) Insurance: CGL provides financial cover for third-party bodily injury or property damage claims or lawsuits because of your demolition company’s regular activities. Whether an incident or accident takes place on your premises (such as a customer visiting your office and being injured in a fall) or a worksite, CGL is designed to pay compensation damages and your legal defence fees if you’re sued.
- Pollution Liability Insurance: Demolition and deconstruction projects involve environmental hazards such as unsettling asbestos or creating dust and debris. Pollution liability coverage protects you from the cost of third-party bodily injury, property damage, and environmental damage resulting from your work whether sudden or gradual. It provides funds for civil fines, emergency cleanup costs, and assessments.
- Tools and Equipment Insurance: A form of property insurance, tools and equipment coverage provides funds to repair or replace your tools and equipment if they are damaged by fire, flood, or vandalism, or if they’re lost or stolen. However, this coverage does not account for damage to your tools and equipment due to wear and tear.
- Errors and Omissions (E&O) Insurance: Also known as professional liability insurance, E&O insurance protects your demolition company from allegations of misconduct, negligence, and errors as well as claims of financial loss resulting from your services or failure to deliver a service as agreed.
- Commercial Property Insurance: Commercial property insurance covers your office, warehouse, or storage compound as well as your business’s contents, furnishings, and inventory if damaged or destroyed by fire, flood, severe weather, vandalism, or theft.
- Commercial Auto Insurance: Commercial auto insurance is necessary for any vehicle used for business purposes that transports people, materials, packaged goods, and tools and equipment. At a minimum, it provides third-party liability protection if you’re in an accident, accident benefits for you and your passengers, as well as coverage if you’re involved in a hit-and-run collision.
- Legal Expense Insurance: Hiring and retaining a lawyer is expensive. Legal expense insurance provides funds to do so as well as access to legal advice with an experienced lawyer on a broad range of business-related issues. It also includes coverage for things such as tax protection, employment or contract disputes, debt recovery, and statutory licence protection.
Who needs it?
Regardless of the demolition services you provide (residential or commercial), there may be risks of injuries and property damage, especially at worksites involving heavy machinery and explosives. Should you or your employees be named in a lawsuit, having the proper insurance will provide the financial coverage that your business requires. Our coverage is ideal for:
- Abatement contractors
- Asbestos removal professionals
- Commercial demolition contractors
- Debris removal contractors
- Excavation companies and professionals
- Residential and house demolition contractors
How much does it cost?
The cost of insurance for demolition contractors costs approximately $2,500 annually for a commercial general liability policy with a $2 million coverage limit. Insurance companies consider several factors when determining a price for your insurance policy, including:
- Your services and types of projects (commercial or residential or both)
- Number of employees
- Years of experience
- The tools and equipment you own
- Your annual and projected revenue
Common claims scenarios
Frequently asked questions
Tips to avoid demolition accidents, incidents, and injuries
Adhering to industry best practices and prioritizing safety are vital to preventing accidents and injuries at any demolition or deconstruction site, including:
- Hiring only qualified, certified contractors who are trained and experienced
- Ensuring you and your employees always wear protective equipment
- Always conducting a full risk assessment before starting any demolition project
- Keeping the worksite clear of debris as much as possible and removing unnecessary obstacles
- Being mindful of and able to identify asbestos
- Monitoring noise, vibration, and dust levels throughout every project
- Knowing the proximity of all nearby buildings and structures and prevent the possibility of damaging them
- Notifying people in the vicinity of the demolition site in advance of the work, when it will commence, and what to expect
- Ensuring traffic is not affected by the demolition work
Other contractor trades we can provide coverage for: