Protecting Your Business Investments Through Construction Insurance

In the construction environment, there are many considerations that a company must focus on when trying to find success. Taking advantage of a high quality crew is often beneficial, to help you meet deadlines, as well as satisfy consumer demands. Having the ability to create competitive bids will help you to remain employed, as you manage new bids, while completing old contracts. One opportunity that is highly valuable to a large number of businesses, looking to protect their interests, is found with the opportunities that exist with construction insurance.

There are a wide variety of different insurance opportunities that businesses are provided information on, so they can potentially take advantage of it. While some insurance may seem unnecessary within the specific field your business works, there are other insurance opportunities that are crucial. Making an investment in insurance creates a form of security, which your business can rely upon, in the unfortunate circumstances of accidents, not meeting deadlines, and many other various liability situations. When pursuing two of the most popular resources companies rely on in relation to insurance, look into the opportunities that exist with construction insurance or builders warranty insurance.

One of the most common insurance policies that construction industry companies pursue can be found with the investment into construction insurance. This resource provides you with a large number of advantages and is specifically designed to protect you in the event of an accident on the worksite. These accidents occur on a regular basis and can be the result of faulty equipment, employee negligence, or unauthorized individuals entering the worksite. By making the investment into protection, you will be able to feel secure that any financial demands made of your company, as a result of these accidents are covered.

The second insurance opportunity that many businesses have a tendency to pursue is found with the resources of builders warranty insurance. The construction environment has greatly changed over the past few years and the higher levels of competition have helped to increase the demand associated with meeting deadlines and remaining on budget. By taking advantage of the opportunities that exist with insurance, you can protect your company in the unfortunate case where deadlines are unable to be met and additional financial demands may be required, as a result of a wide variety of different circumstances.

While each of these insurance policies offer a company many advantages that help to protect their interests, as well as their associates, it is often advisable to take advantage of both construction and builders warranty insurance. These unique opportunities are only available when you make a smart investment into a high quality insurance company, which could meet your demands and simplify this process.

Important Construction Insurance

As an owner of a construction company your employees and your clients face different types of risks everyday on the job. Because of these risk Construction Insurance is required on every construction project. Insurance will provide coverage for material, risks, disasters, employees hurt on the job and even protect your business.

It is important to have the right coverage in case the unexpected happens. Below you will find just a few of the insurance coverage you need to protect your construction company.

Types of Construction Insurance:

Liability Insurance

Liability Insurance is designed to protect contractors against injuries, accidents, and property damage to third parties. As a construction company you are normally on someone else property doing a project. Liability insurance will cover you if an employee causes any property damage outside the construction contract. It will cover the clients loss and any loss you have gained as a result.

Also as a construction company you have a lot of moving equipment on job sites, you will also have clients and other people onto the job site checking progress. Liability Insurance will cover you if someone is hurt during the operations of your company. An example would be if the client is hit by a falling object and is injured.

Worker Compensation Insurance

Workers compensation is a system built to help companies pay for benefits of employees hurt on the job. Coverage will pay for medical benefits, lost wages, and rehabilitation cost related with getting the employee back to work.

Not all states require companies to have Workers Comp insurance. Most states require that if you have 1 or more employees that you have coverage on each employee, full-time, part-time, legal or illegal.

Even if you are not required to have Worker Comp Insurance it can be a valuable part of your company’s risk management. If you don’t have the right coverage and an employee is injured on the job then you are liable for all the costs. With the way medical costs keep going up nowadays you can imagine the effect it can have financially on your company.

You want to speak to a broker certified in your region to make sure you have the right coverage to keep your company protected.

Contractor Bonds

Contractor Bonds act as a guarantee between the client and the construction company that the project will be completed to satisfaction without any financial hardship. More and more private companies are requiring certain bonds in order to do business with them. Most require that you have a bond just to place a bid on the project.

Be on the Safe Side With Construction Insurance

The construction industry is one that involves a considerably large number of manpower and colossal cash investments. People who work in a construction site often put their lives at great risk because they usually work with dangerous tools, work at great heights, handle heavy equipment and toxic materials, and so on. For this reason, the construction industry is strongly associated with great amounts of risk for both finances and lives. A small negligence or stroke of bad luck on the part of the owner of the construction company or worker may prove too dear. As it may result in great financial loss; these unfortunate incidents require implements which can help the company out of a bad situation; enter construction insurance.

Like other types of insurance, construction insurance is used to protect the different parties that are involved in the construction process. If you own a construction company it is imperative that you get an insurance policy that is tailored for the construction industry. Getting the right insurance policy will cover all the costs that may be incurred as a result of damage to property or personal injuries suffered at construction sites. You need to understand that this type of insurance will not only include the owner of the company, but will also include employees, subcontractors, workers, sole proprietors, business partners and tenants.

Construction insurance is extremely important and should never be ignored. As mentioned earlier, construction entails the use of heavy tools end equipments, labour, materials etc and is quite prone to accidents. It is common knowledge that at every construction site, there is ALWAYS an accident waiting to happen. It falls on the owner of the construction company to pay for the medical treatment bills of injured workers or pay compensation to the families of a deceased worker who died on the job.

The material cost that is associated with construction is pretty high and any type of damage to the material or the structure will definitely lead to a humungous financial loss. If your company has construction insurance, you can easily seek financial assistance from your construction company. People who purchase the apartments or the constructed structure will have every right to sue the construction company if the purchased property is faulty. In cases like these, the construction company will have to pay the repairing or the remodelling of the constructed property. By having insurance tailored for the construction industry, builders will be protected from those claims because their insurance company will provide the necessary financial assistance. Aside from the aforementioned circumstances, construction insurance also offers a wide variety of coverage providing security to your business in case of unforeseen events.

Construction Insurance – Importance and Coverage

Construction involves large number of manpower and huge investments of money. The workers at a construction site risk their lives working at great heights, with dangerous tools, toxic materials, heavy equipment, under tunnels, etc. Hence, construction is associated with high amount of risk for money and lives. A slight negligence or bad fortune on part of the worker or owner may prove too costly. It may lead to a huge financial loss. These unfortunate events require tools, which can bail the company out of the situation. Here arises the need of ‘Construction Insurance’, the risk management tool, customised specifically for the construction industry. Construction insurance is like any other insurance, which is used to protect the various parties associated with construction process.

A comprehensive construction insurance policy covers all the expenses that may occur due to property damage or personal injuries at the construction site. This insurance not only includes the organization owner, but also workers, employees, tenants, sub-contractors, sole proprietors and business partners.

Importance of construction insurance
As discussed above, construction involves usage of heavy equipment, materials, labour, etc. and is more prone to accidents. Since the business stands liable for any accident on the construction site, it is the business owner or the contractor that should pay for the medical treatment charges of the injured or compensation to the families, in case of death of the worker.

Material costs associated with construction are very high. Any damage to the structure or the materials leads to huge financial loss. Insured with the construction insurance, one can seek financial assistance from the insurance company.

The buyers of the flats or the constructed property will have all rights to sue the construction company, in case of faulty construction. In such cases the construction company has to pay for the remodelling or repairing the constructed site. Construction insurance protects the builders from those claims, by providing financial assistance.

Apart from the above circumstances, construction insurance provides wide coverage, providing security to the business in case of unpredicted events.

Four main areas it covers
Construction insurance is very significant in terms of its coverage. It is very comprehensive and is specifically designed to cover every aspect of construction process, to make the business process flexible. Construction insurance covers four major areas of business insurance. They are:

Public liability insurance
Public liability insurance is a general insurance to be possessed by any business which involves interaction with the customers or people in general. Public liability insurance as part of construction insurance helps the businesses in case any damage to third party property or individuals is caused by employees or the tools used in construction.

Employers liability insurance
As the construction industry involves lot of risks, any worker can get injured or die at any point of time, due to the faulty equipment or negligence of supervisors or co-workers. Employers are responsible for the health and safety of their employees at construction site. Moreover, the employees will have every right to sue the owner and claim for compensation. In case of such unexpected events, the employer or the owner can benefit from the construction liability insurance, as the insurance company pays the medical costs or the compensation associated with the claims.

Contractors all risks insurance
Contractors all risks insurance is customised for construction businesses. It provides assistance for contract works of new houses, theft of materials or tools, damage to the materials or tools due to unexpected events, sudden stoppage of on-going works of new houses, owned or hired plants, etc. This insurance acts as a perfect help for the most commonly incurred accidents in the construction process.

Personal accident insurance
This insurance is specifically designed for managers, sole proprietors or business partners. This is useful in the cases, where the person injured can’t blame any other person for the injury caused to him. This is helpful in providing assistance during the period for which the injured person cannot get income.

Construction insurance is very important for construction businesses as the damage or the financial loss occurred is very hard to be recovered. Businesses should realise that the cost of premiums for insurance is less when compared to the compensation costs. Therefore, it can be concluded that, construction insurance is very valuable in making the business sustain for long run.