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Do You Need Insurance For Liability?

Yes, you do. Any business that deals in high-risk and related activities, such as construction, should have appropriate levels of insurance in place. Otherwise, you run a serious risk of bankruptcy if there’s a judgment against your company — or worse, exposure of the owners personally.

Additionally, liability insurance may well be a requirement of any job that you work on. Be sure to speak to a commercial insurance professional to make sure you have the levels — and different
kinds of business insurance — that you will need.

These include: forming a separate business entity, having a written contract for all of your jobs and complying with any health or safety regulations that are relevant to your business. Don’t overlook codes and regulations concerning sanitation and disposing of hazardous materials.

As to the business itself, you’ll want a clear understanding with
your business partner about decision-making, capital contributions and why each of you might leave the business which you’d address in a partnership agreement. A local attorney who understands the construction industry should be able to help you with these items.

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