Here’s what every contractor should consider during the busy summer season.
The Unique Risks of Summer Construction
Summer construction work comes with its own set of challenges. Higher temperatures, tighter deadlines, and increased foot traffic at job sites all raise the stakes. Some of the most common seasonal risks include:
- Heat-related illness among workers, especially if proper hydration and breaks aren’t enforced.
- Increased equipment usage, which can lead to mechanical failures or accidents.
- More subcontractors and seasonal hires, raising the chances of communication errors and liability issues.
- Storm damage from sudden summer weather events like windstorms, lightning, or flash floods.
For contractors, having the right construction liability insurance in place is a business necessity. Whether you’re managing a small crew or leading a large-scale infrastructure project, understanding what your insurance does (and doesn’t) cover can help you avoid costly setbacks and legal complications. While safety training and on-site precautions help reduce these risks, they don’t eliminate them entirely.
What Is Construction Liability Insurance?
Construction liability insurance is a type of commercial insurance specifically designed for businesses in the construction industry. It protects contractors and subcontractors from financial loss due to third-party claims of bodily injury, property damage, or personal injury caused by your operations or work.
If a passerby is injured by falling debris or if a subcontractor damages a client’s existing property, this insurance can cover medical bills, legal defense fees, and any resulting settlements.
Key protections typically include:
- Bodily Injury Liability: This covers medical costs and legal expenses if someone is injured on your job site (other than employees).
- Property Damage Liability: Property damage covers the cost to repair or replace third-party property that is accidentally damaged during construction.
- Completed Operations Coverage: This coverage protects you if something you built causes damage or injury after the project is completed.
Many clients require proof of construction liability insurance before allowing work to begin, making it essential for both legal protection and job eligibility.
Why Workers’ Compensation Insurance Matters in Construction
General liability only covers injuries to third parties; it does not cover your employees. That’s why contractors also need workers’ compensation insurance, especially in a physically demanding industry like construction.
Workers’ compensation provides coverage for:
- Medical bills
- Lost wages
- Rehabilitation costs
- Disability or death benefits (in the case of fatal accidents)
Missouri law requires most employers with five or more employees (or any construction business with one or more employees) to carry workers’ comp coverage. Summer heat increases the risk of heatstroke, dehydration, and fatigue-related accidents on job sites.
Having workers’ comp in place keeps you compliant with the law while ensuring your crew is protected and that your business isn’t on the hook for high out-of-pocket expenses.
How to Protect Equipment With Inland Marine Insurance
Construction jobs often rely on heavy machinery, tools, and equipment that move from site to site. Standard property insurance may not cover this mobile equipment, which is why inland marine insurance is so important.
This type of insurance covers equipment while it’s in transit or stored at a job site, including:
- Bulldozers
- Scaffolding
- Power tools
- Generators
- Temporary Structures
During the summer, job sites are often exposed and more accessible to theft or vandalism, especially if work extends into evenings or weekends. Inland marine insurance helps you avoid costly delays by ensuring you can repair or replace essential equipment quickly.
Learn how seasonal insurance coverage protects contractors from weather-related setbacks and shifting operational risks.
The Value of Builders Risk Insurance
If you’re building a structure from the ground up or doing significant renovations, builders risk insurance (also called course of construction insurance) provides coverage for the project itself while it’s underway.
Builders risk can help cover:
- Fire
- Vandalism
- Theft
- Weather damage (such as lightning or wind)
- Material loss during transit or storage
While construction liability insurance protects against claims from third parties, builders risk covers your investment in the project. Summer storms in Missouri can roll in without warning, causing damage to partially completed work. Without builders risk insurance, those costs could fall squarely on your shoulders.
Coverage Considerations for Subcontractors
Summer is a peak hiring period for many contractors who bring on extra workers or subcontractors to meet rising demand. However, these additional personnel can expose your business to new liabilities, especially if their insurance coverage isn’t clearly defined.
Make sure that any subcontractors you hire:
- Carry their own liability and workers’ comp insurance
- Provide certificates of insurance before starting work
- Are included in your project’s risk management plan
If a subcontractor causes damage or injury and they’re not adequately insured, your business could be held liable. Construction liability insurance often excludes independent contractors unless they’re specifically listed on the policy, so always double-check before assigning them work.
Filing a Claim: What Contractors Should Know
Accidents happen, and when they do, having the right insurance is only half the battle. You also need to know how to file a claim effectively.
Here’s a quick step-by-step guide:
1. Document the Incident: Take photos, gather witness statements, and collect all relevant details.
2. Notify Your Insurer Promptly: Don’t wait—many policies have time-sensitive reporting requirements.
3. Cooperate With Investigations: Your insurer may assign an adjuster to assess the damage or interview those involved.
4. Track Expenses: Save receipts and records related to repairs, medical costs, or other incident-related expenses.
5. Review Your Policy: Confirm what is and isn’t covered before assuming anything about your claim payout.
Being prepared and organized can help speed up the claims process and improve your chances of receiving a full settlement.
Why Summer Is the Time to Reevaluate Coverage
With more work, more exposure, and more people on-site, summer is the season when insurance gaps can cause the most damage. That makes it the perfect time to:
- Review your construction liability insurance policy limits.
- Add inland marine or builders risk coverage if your projects involve expensive tools or new construction.
- Ensure all team members and subcontractors are properly insured.
- Confirm your workers’ comp policy includes new hires or seasonal laborers.
Contractors who stay proactive with their insurance during the summer months position themselves to handle increased risk, avoid costly legal battles, and protect their long-term business stability.
Stay Safe This Summer
Construction work doesn’t slow down in the summer, nor do the risks. From heat-related hazards to storm damage and equipment theft, summer conditions can quickly derail an unprepared contractor. That’s why having robust construction liability insurance and complementary policies is critical.
By covering your crew, your job site, and your bottom line, the right insurance package gives you the freedom to focus on delivering quality work without worrying about what could go wrong. Whether you’re managing one crew or juggling multiple job sites, a thoughtful risk management strategy will keep your business protected when it matters most.
Protect Your Job Site Before Summer Risks Escalate
NEC Insurance offers customized construction liability insurance to help contractors stay covered through high-risk seasons. Reach out today to secure the right protection for your team, your equipment, and every project you take on this summer.
