Despite the high investment involved in construction industry, accidents may cause injuries and death of the workers or damage of the property as the sites involves working in great heights, with dangerous tools, toxic materials and under tunnels which may cause the company to incur considerable losses. 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. The specified peril insurance policy only offers compensation to the contractor in case any of the risks that have been listed in the contract agreement occurs. Although purchasing an all risk insurance company is expensive, the construction will always be totally insured.
It is mandatory for every contractor to have general contractor insurance when working on a project. This ensures that any risks to your business after the working hours are sorted. It also reduces the chance of the company being on contractual liabilities, lawsuits, and accidents. The cost of this insurance is determined by 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 qualities that a construction company should be looking for in a risk consultant are experience and knowledge in handling and defending against claims. With risk consultants the construction company does not have to worry about the legal issues hence the can be able to get their job done properly.
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. For total security, the construction company should consider purchasing comprehensive liability insurance.