In the construction industry, the odds of you having identical workdays is extremely rare. You are always susceptible to different conditions and problems that involve workers, materials, and equipment. 

As with most other industries, this calls for the need for insurance and a way for you to track them automatically. Let us dive in a little deeper into why construction insurance tracking is crucial for you.


Why is it important?

Construction sites are one of the most unpredictable places to work in. There are so many factors that you have no control over as they rely heavily on machinery, weather, etc. 

Legally, every individual worker should have valid insurance before they can even step foot into the site. However, most of them do not track their insurance properly which eventually leads to expiry. As the owner of the site, you just cannot afford to take this risk. 


What does it protect you from?

The coverage areas of your insurance should be as wide as possible because you never know the areas of risks until you encounter them. Nevertheless, the more coverage you need, the more would be the cost of acquiring insurance. 

You must not shy away just because the insurance premium is too high. This is an expensive business and you must try to get every aspect of it insured. 


  1. Contractor liability

This is one of the most vital coverages you must possess. Contractor liability would protect you against any injuries that your workers may face or any property damage that they cause. 

Apart from protecting your assets, this would also cover your court fees in the event of a case. The value of this coverage should be at least twice or thrice the value of your construction.


  1. Worker’s compensation

You risk your finances while the workers who work on-site risk their limbs and lives every time they step into the site. Apart from the legal troubles you would face, it would only be morally wise if you make them feel safe. 

A worker’s compensation insurance would cover the medical expenses of an injured worker should there be an accident. It would also cover his loss of wages while he recovers. 


  1. Builder’s risk

This temporary coverage is something that you will need until you get through the process of construction. The builder’s risk coverage would protect the structure of your project along with the materials that you use to build. 

It can cover thefts, explosions, and fire but it would not extend its coverage to earthquakes and employee thefts. To remind yourself of how important COI is to your industry, read this article: The Importance of COIs in the Construction Industry.


  1. Performance bond

No matter how well you plan your construction, you might miss a thing or two and the output might not exactly match with what you have agreed upon in the contract. 

If this were to happen, the money you have in the performance bond will cover the completion expenses. This bond is usually referred to as surety bonds and this will keep your project going even if your initial contractor fails to do his job.


  1. Contractors pollution

There are many chemicals involved in construction that could easily pollute the air and the water bodies that surround the site. Most companies realize this but still choose not to change the way they operate because it is cheap and cost-effective. 

You might be legally sued for polluting and if this happens, the contractor’s pollution policy would lend you a hand. 


  1. Commercial automotive damages

It is impossible to complete constructions without the use of automobiles to transport materials and equipment. Most of this heavy-duty machinery is expensive which is why most companies rent and do not buy them. 

Imagine how big of a dent it would leave in your budget if you were to replace them. This is why in case of an accident; commercial auto insurance would cover these damages. 



Expired insurance is not even worth a penny, which is why it is important to track your expiry dates properly. Manual tracking could make your life a living hell. 

It is time you consider using automatic insurance tracking software to manage your insurance documents. You are just one-step away from getting the best! Schedule a Free Demonstration by contacting our experts.