Importance of construction insurance
Construction involves a huge investment of money and manpower. The workers risk their lives using heavy equipment, hazardous materials and tools and working at great heights. A slight negligence may prove to be too dangerous and costly. As such, getting construction insurance is very important. It covers the expenses that may occur due to personal injuries or property damage at the construction area. Construction insurance covers the company owner, workers, sub-contractors, tenants, business partners and sole proprietors.
Why Get Construction Insurance
Accidents can happen anytime. The business is responsible for any accident at the construction site, so the contractor or business owner should pay for the medical treatment costs of the injured person or compensation to the families if the worker died. When you have construction insurance, you can get financial assistance from your insurance company.
In case of poor construction, the buyer of the constructed property can sue the construction company. When this happens, you also need to pay for fixing or remodeling the building. Construction insurance protects construction companies from such claims by giving them financial assistance.
Areas Covered by Construction Insurance
Construction insurance is designed to cover various areas of the construction process. The major areas it covers include the following:
Personal Accident Insurance
Business partners, managers and sole proprietors can benefit from this kind of insurance. It’s useful when the injured person cannot blame the any other party for his injuries. Personal accident insurance can provide financial assistance during the time that the injured person cannot earn money.
Employers Liability Insurance
The construction industry involves a lot of danger. Anyone can sustain injuries or die due to the negligence of co-workers or supervisors or defective equipment. Employers are liable for the safety and health of their employees at construction area. Employees can sue their employer and demand compensation. When an accident happens, the employer can benefit from having construction liability insurance as the insurance company pays the compensation and medical costs associated with the claims.
Public Liability Insurance
Businesses that involve interaction with people such as the construction industry should get public liability insurance. It helps the business in case any damage to other people or third party properties is caused by the tools or equipment used in the construction process or by the employees.
Contractors All risks Insurance
Construction businesses can benefit from contractors all risks insurance as it gives assistance for contract projects of new properties, hired or owned plants, damage to tools or materials due to unforeseen events, sudden stoppage of uncompleted projects and theft of tools or materials. Contractors all risks insurance serves as the perfect tool that can help businesses during the commonly experienced accidents in the construction site.
Construction businesses should seriously consider getting construction insurance so that when accidents happen, they will not suffer significant financial loss. The cost of insurance premiums is less when compared to the lawsuit and compensation costs that should be paid. Construction insurance is indeed a valuable investment that can protect both the employer and employees.
If you have questions regarding construction insurances for personnel or employees and would like to confirm, Sotech Asia can definitely assist you.