The need for insurance for anyone engaged in the construction business is a foregone conclusion. The heavy equipment at work, the danger of damage to this equipment and to the surrounding in which it is used and to the surrounding s in which it is used, and the risk of injury to the men who operate it all add up to an unquestionable need for some kind of protection. But what kind? And how much? Insurance should do three things for you: one, protect your property; two, protect you against lawsuits; and three, protect your business. Because construction work involves the use of heavy equipment, the protection against the high cost of damage to this machinery is of primary importance. Insurance of this type is called property damage insurance. Property damage insurance is written primarily to protect you against losses due to fire. But endorsements known as "Extended coverages" can protect you from other losses due to smoke, flood and vandalism. Liability insurance protects you against the treat of a lawsuit arising out of bodily injury or property damage. Liability insurance protects you whether you win the case of lose. In the latter case, it pays the judgment and all court costs. However, even if you win, insurance will still pay the court costs. You will also need some form of business life insurance if you are in business for yourself- whether it is a sole proprietorship or a partnership.