Construction Company Insurance
A construction company is involved in the process of creating infrastructures. Houses are not the only operations executed by construction workers, but also commercial buildings, bridges, and roads. They do this using lots of physical labour, expensive machinery, and time so that the project can be completed within the client’s particular time frame and budget as long as it is a realistic goal. Insurance for any trade is a great idea but read on below to see why construction company insurance is essential below.
Many mistakes can be made whilst on the job, even though unintentional, such as injuries or professional errors, which can subsequently cost financial resources to fix. Insurance is a way of eliminating this risk factor.
If you would like to read more information or learn more about the pricing of business insurance, you can do so here.
What is the Importance of Construction Company Insurance?
Types of Construction Company Insurance
Construction companies need a culmination of various covers to ensure that every claim they face will be covered. Below are the most common types of Construction Company Insurance.
Professional indemnity insurance
Professional indemnity insurance is obtained for protection against claims that the construction company was negligent in their acts of service or made a mistake that cost the client finances and time, potentially ending in an even costlier litigation battle. Construction workers are involved in the building process from start to finish and often create the building envisioned by the client with their input. However, if this advice turns out to be in poor judgement, the project could be delayed severely.
For instance, if the workers decided to use a cheaper material in construction to lower the expenses for the final project, this material may not hold up the structure well and cause a collapse. Professional indemnity insurance would reimburse the client for the materials wasted and new materials needing to be purchased. Similarly, if the construction workers mismeasured the dimensions of the structure and when assembling the pieces and they did not fit, the insurer would cover the costs of rectifying this error.
Public liability insurance
Public liability insurance defends the company from claims that their services injured another person or destroyed their possessions. In the construction sector of industries, there is lots of dangerous equipment used which is heavy and loud, therefore having the potential to harm another person. In this circumstance, it is vital to obtain such a cover. If a client visited and saw how their project was moving along and happened to fall into a ditch on the worksite, this was caused directly by the construction company.
The insurance should cover any medical treatment necessary. Similarly, if they left their car on the site and a forklift or bulldozer damaged it, the person operating the plant would be responsible, so the company would be liable to pay. When the claim is filed, the insurer evaluates the extent of damage and determines a payout based on the policy.
Equipment and tools insurance
Equipment and tools insurance is by far one of the most significant covers a construction company should consider, as these are vital components of the job and working without them would be impossible. Paying for new equipment out of the company’s budget, or renting new equipment until you can afford to do so, can be detrimental to the company’s growth as the finances would be affected negatively on something that could so easily be avoided.
Ensuring the most expensive equipment, like concrete mixers, screwdrivers, hammers, and drills, is worthwhile because if they are destroyed in an accident like fire, flood or earthquake, they can quickly be replaced, and the company reimbursed.
Even worse, if stolen, this would still be covered under the policy. Unfortunately, plant insurance is not usually included in this cover; therefore, a separate cover may need to be acquired insuring heavy machineries like excavators, bulldozers, cranes and forklifts. Researching which companies offer this as an extension of equipment and tools insurance may save a lot of money for receiving quotes.
Personal accident insurance
Personal accident insurance is aimed towards the company’s employees, whereby if they are involved in an accident that injures their body and makes it difficult for them to work, they would be given a lump sum for the lost income whilst they are treated at home.
Construction workers are involved in lots of physical labour, and so any injury involving the use of their legs or arms makes it almost impossible to work. Personal accident insurance covers any accidents occurring outside of the workplace. In the same way, employers’ liability insurance provides a payout for lost income and medical treatment, but only for accidents in the workplace.
Construction Company Insurance
Overall, construction company insurance should cover a broad base of accidents: injury to the public, employee injury, equipment damage, and professional mistakes. This allows the business to expand its customer base and improve its services, as its finances are being protected.
Find out more about the importance of insurance here.
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