What is Construction Insurance and What it Covers?
- Author James Foster
- Published October 8, 2010
- Word count 736
Construction involves workers, transport vehicles, heavy equipment, and other necessary materials like cement bags, hollow blocks, steel rods etc. Construction is a risky work and serious injury or death of workers or damage to property is a common issue. So if you are involved in construction industry, it is very important to carry construction insurance. Construction insurance is an important consideration for construction professionals including builders, owners, contractors etc. It will serve as the greatest protection against any liability that may arise out of construction.
The unpredictable nature of the construction industry can make you pay for the tons of damages during the course of the construction. Construction insurance helps in covering a multitude of possible issues that arise during construction. The cost of the insurance premium would be many times lesser than the cost of these issues. This is why many construction companies consider construction insurance as an essential part of their construction budget.
Four main areas it covers
Construction insurance has many types of policies covering a wide range of losses arising during the construction. Construction insurance provides coverage to construction professionals from claims resulting due to various types of risks in the form of accidents, thefts, damages, and injuries. Some of the common construction insurance packages are Public Liability Insurance, Employers Liability Insurance, Contractors All Risks and Personal Accident Insurance.
Public liability insurance
Public liability insurance covers your business when you or your employees cause bodily injury or death to an outsider or damage a third party's property during the process of construction. A third party could claim that they have suffered a loss because of your negligence and sue you or your company for compensation and damages. Public liability insurance claims are sometimes said to run into hundreds of thousands of Euros. Public liability insurance policy helps you by picking up the cost of the claim.
Consider an example where public liability insurance provides you a cover. When one of your employees working at the construction site, drops a piece of equipment which falls to the street, injuring a passing pedestrian or damaging a person's property. He can sue you for your employee's negligence and claim against your firm.
Employers liability insurance
Employers liability insurance covers you against claims from your employees, if any of them suffers physical injury or death during the construction process. Public liability insurance covers your business against claims from third parties, where as employers liability insurance covers you from your employees' claims.
For example: When an employee working at the top floor at the construction site falls and suffers a serious injury or dies, he or his family members can claim against your firm. The employers liability insurance can help you by paying the employee's claims.
Contractors all risks
Contractors all risks insurance is designed specially for builders, owners and contractors. This policy provides cover for the property being worked on such as a new house which is being constructed. This policy covers loss or damage to contract works, materials and even equipments. For example if you are building a new house, you will be covered if any of your work in progress is damaged. Contractors all risks insurance can include cover for contract works, own plant, hired-in plant and employee's tools used for construction.
Personal accident
Personal accident insurance, sometimes called as accident insurance, provides an income if you are unable to work as the result of an accident at the construction site. Although personal accident insurance is no substitute for your full time earnings, it will at least reduce your financial worries during your recovery. Personal accident insurance is very useful for sole traders, business partners and company directors as it is extremely difficult for them to sue their own company for any accident.
For example, you are a self employed carpenter. You cut your hand and are unable to work for several months. As you have personal accident cover, you will receive some money to meet your financial needs until you return to work.
As accidents and damages are common during the construction work in most construction sites, construction insurance is definitely an important asset. Your construction project will be a lot safer and secure through a right construction insurance policy. However, the selection of right insurance company is also very important. Make sure that the insurance company you choose is a reputed one and experienced in construction insurance policies before making any decision.
Keystone Insurance Group is Ireland’s premier supplier of public liability insurance and business insurance solutions to Irish industry. We offer a broad range of builders insurance, construction insurance, and business liability insurance products. Our public liability insurance Ireland and business insurance Ireland products offer great value to contractors and general business customers.
Article source: https://articlebiz.comRate article
Article comments
There are no posted comments.
Related articles
- The Transformative Power of Yamaigel’s Certified Gel Eye Masks
- Checking account with cell phone protection!
- Keeping Cool This Summer: Air Conditioning Installation Services in Milwaukee
- A DIY Guide to Fixing Your Garage Door (with a Call to Garage Door Magnolia When All Else Fails!)
- Can a Bent Garage Door Be Bent Back into Shape? Don't Panic, Call Kiki Garage Door!
- How Can I Tell If My Garage Door Opener Sensor Is Bad?
- Maximizing Profitability: The Economics Behind Customizable Design Assets
- Exploring the Hidden Gems of Si Racha, Thailand
- DIY vs. Professional Movers: Pros and Cons in 2024
- MK Web Celebrates Top Position in Bourne's Premier Web Design Rankings
- The Road to Sobriety: Understanding Substance Use Disorders
- MotorKote Ultimate 40/60 Synthetic Hyper Mix 5W-30
- Exploring Denver on a Dime: A Frugal Travel Guide
- Top 10 Ways Production Scheduling in Business Central Transforms Manufacturing
- Strength Training and it's Incredible Benefits for Fat Burning
- Enhancing Home Security with Aluminum Shutters: A Focus on Weatherwell Elite
- 5 Easy Ways to Make Oral Hygiene Fun for the Whole Family
- Transforming Plastic Extrusion Machines into Recycling Powerhouses
- Unraveling the Potential of Plastic Extrusion Machines
- The Rise of Plastic Recycling Machines: A Step Towards Sustainability
- Strawberry Cheesecake Ice Cream: OMG! Unreal!
- The Advantages of Using Professional Home Cleaners in Ilford
- 8 Compelling Reasons to Hire Professional Home Cleaners
- The 12 Steps Narcotics Anonymous Program To Recovery
- Send Money to Tanzania: Effortless Transfers with SafariRemit
- Stylish Savings: 10 Frugal Ways to Stay Fashionable in 2024
- Fly Cheap With FlightPapa To Any City
- How Collaborating with a Software Development Company Can Propel Your Business Forward
- A Comprehensive Guide to Choosing the Best Hair Transplant Method
- 15 Frugal Tips for a Memorable Wedding Day