How can I insure my small construction business against water damage claims?

Water damage claims can happen despite your best efforts. Learn how construction insurance can protect your small construction business.

David Granahan - Writer for NEXT Insurance
By David Granahan
Michelle Meyer - Editor for NEXT Insurance
Edited by Michelle Meyer
Matt Crawford for NEXT Insurance
Fact-check by Matt Crawford

Published June 5, 2023.

Water damage not only impacts your client's physical property and its contents but can also put your construction project behind schedule and set you back financially. That's why insuring your small construction business against water damage claims is important.

This is where construction insurance comes in.

How Construction insurance protects against water damage claims

Construction insurance typically includes general liability insurance. This can help protect you against water damage claims by covering:

  • Costs to repair the water damage
  • Medical fees if someone other than an employee got hurt because of the water damage
  • Legal fees if your client sues you

In addition, construction insurance can also include errors and omissions insurance. Say your client believes the water damage was your fault because you were negligent or used sub-par materials. Plus, the water damage caused your client to lose money, so they're filing a lawsuit against you. Errors and omissions insurance can help you pay for replacements and repairs as well as any legal costs.


Consider adding these policies to your construction insurance:

» Find out how to prevent water damage claims even if you're insured

Benefits of Construction insurance in the face of water damage claims

  • Financial protection Construction insurance can ensure you're not burdened with substantial repair or replacement costs, allowing you to focus on your projects without fearing significant financial setbacks.
  • Risk management Having the right coverage helps makes sure you're prepared for unforeseen events. By mitigating risks proactively, you can maintain smooth operations and protect your business from potential disruptions.
  • Reputation management Should a water damage claim come up, having insurance coverage showcases your professionalism and dedication to meeting challenges head-on, enhancing your business's reputation in the industry.

Protect your small construction business

Don't wait for water-related damage to strike — take charge and protect your business today by obtaining the right construction insurance coverage.

NEXT can help by offering you affordable, tailored business insurance. To view your options, simply apply online and get an instant quote in less than 10 minutes. Then you can get your certificate of insurance and share it 24/7 with the NEXT app.

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