Wildfire Season and Construction Projects: Keeping Your Business Covered

California’s wildfire seasons have grown longer and more unpredictable, and construction sites may sit squarely in harm’s way. If you run a contracting business in Arvin & Bakersfield, CA, now is the time to take a hard look at your insurance coverage.

Understanding Wildfire Risks for Construction Projects

A construction site is not like a finished building. Materials are often exposed, fire suppression systems may not be installed and workers may be on-site when conditions shift quickly. A wildfire moving through a project zone can destroy weeks of work, damage equipment, and leave a contractor liable for delays and losses that ripple through the entire project timeline.

Key Insurance Policies for Contractors

Several policies can work together to financially protect a construction business during wildfire season:

• Builders risk insurance can cover structures under construction against fire damage, though wildfires are not always automatically included in a standard policy. Many policies may require a specific wildfire endorsement or a separate policy to address this exposure.
• General liability insurance may include coverage for third-party property damage connected to your operations, such as if you accidentally start a fire that spreads to other properties or causes third-party injuries. In many areas, licensed contractors are required to carry general liability insurance to maintain their licenses.
• Tools and equipment insurance can cover tools and machinery if they are damaged or destroyed on-site or in transit by wildfires.
• Workers’ compensation insurance can cover employees’ medical expenses and lost wages if they are injured or become ill due to a workplace incident, such from wildfire burns or smoke inhalation.
• Business interruption insurance can help your company weather financial losses if a wildfire delays a project or otherwise disrupts your operations.

Proactive Steps for Construction Site Safety

Strong coverage should be paired alongside good site practices. Clear dry vegetation from the perimeter regularly, store flammable materials away from active work zones, and have a documented evacuation and shutdown plan ready before fire conditions escalate.

Coordinate with your project team so everyone knows the plan before an emergency develops.

Protect Your Business Before Fire Season Peaks

Wildfire risk is not theoretical in California. Contact Cal Total Insurance Services, LLC today to review your current coverage and identify any gaps before the wildfire season approaches.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.