When working in a construction site one has to put a lot of investment into it yet a lot of risks are expected because the workers are involved with great heights, dangerous tools, toxic materials and under tunnels hence the possibility of an accident is very high. With construction business insurance, a construction company can be able to cover losses that are likely to be expected in such accidental events. With a construction business insurance the construction company does not have to worry about financial liabilities to cover for medical treatment charges to the injured worker as well as compensation to their family in case they are deceased, cost of remodeling or repairing a construction site in case the buyer is not pleased with the construction work and damage of material and structure.
The two types of construction business insurance policy are all risk policy and a specified peril policy. Construction Company looking to cover all construction business risks should look for an all risk insurance policy. To cover every possible construction risk, the company can opt for an all risk insurance policy. With a specified peril insurance policy, the construction company will only expect compensation if any of the risks listed on the contract with the insurance company occurs. The cost of an all risk insurance policy is higher than that of a specified peril insurance policy and the amount of security is also higher when compared.
It is mandatory for every contractor to have general contractor insurance when working on a project. Accidents, negligence or damage that occurs after the working hours are covered by general contractor insurance. It also reduces the chance of the company being on contractual liabilities, lawsuits, and accidents. The cost of general contractor insurance is dependent on factors such as risk levels, the total payroll expenditures, the company’s gross receipts, the type of work done, and the amounts coverage that they require.
Hiring risk consultants during a construction project is important as it helps to reduce claims associated with poor management from improper fund allocation for projects, poorly scheduled timing for a specific project, or miscommunication with international clients that lead to disagreements and misunderstandings. Debt recover and claim defense on behalf of the construction company is also the role of the risk consultants. The risk consultant that a construction company hires should have the experience and enough knowledge to handle claims against the company and file claims on their behalf. Risks consultants take care of legal matters so that the contractors can focus on construction.
In conclusion, every construction company should ensure that they purchase a construction liability insurance to ensure financial security for any damage of property or injuries to the workers. Purchasing a comprehensive liability insurance ensures that any type of accident is covered by the insurance company.