Construction involves a large number of labor and large investments of money. Workers at a construction site risk their lives to work in high altitudes, with dangerous tools, toxic materials, heavy equipment, under tunnels, etc. Therefore, the construction is associated with high risk of money and life. A small negligence or bad fortune on a part of the worker or the owner may be too expensive. This can lead to a big financial loss. These unfortunate events require tools that can help the company out of the situation. Here is the need for Construction Insurance, the risk management tool, tailored specifically for the construction industry. Building insurance is like any other insurance that is used to protect the various parties in connection with the construction process.
A comprehensive building insurance policy covers all expenses that may arise due to property damage or personal injury at the construction site. The insurance covers not only the organizational owner but also employees, employees, tenants, subcontractors, sole proprietors and business partners.
Importance of building insurance
As discussed above, construction involves the use of heavy equipment, materials, labor, etc. and is more prone to accidents. As the company is responsible for any accidents at the construction site, it is the companys owner or contractor to pay for the injured or reimbursement to the families at the death of the employee.
Material costs associated with construction are very high. Any damage to the structure or material results in major economic loss. Insured with the building insurance you can apply for financial support from the insurance company.
The buyers of the apartments or the built property will have all rights to sue the construction company in the event of improper construction. In such cases, the construction company must pay for the reconstruction or repair of the constructed site. Building insurance protects builders from these requirements by providing financial support.
Apart from the above circumstances, building insurance offers a broad coverage, which provides security for operations in unforeseen events.
Four main areas cover it
Construction insurance is very significant in terms of its coverage. It is very comprehensive and is specially designed to cover all aspects of the construction process, to make the business process flexible. Building insurance covers four main areas of business insurance. They are
General liability insurance
General liability insurance is a general insurance policy that is owned by any business involving interaction with customers or persons in general. General liability insurance as part of construction insurance helps companies in case of possible damage to third party property or individuals caused by employees or the tools used in the construction.
Employers liability Insurance
As the construction industry poses great risks, any employee may be injured or die at any time due to the inadequate equipment or negligence of supervisors or employees. Employers are responsible for the health and safety of their employees at the construction site. In addition, employees have the right to sue the owner and request compensation. In such unexpected events, the employer or the owner may benefit from the liability insurance, as the insurance company pays the medical costs or compensation in connection with the claims.
Entrepreneurs all risk insurance
Entrepreneurs all risks insurance is customized for construction companies. It provides assistance to contract work of new houses, theft of materials or tools, material damage or tools due to unexpected events, sudden stopping of ongoing work with new houses, owned or arriving facilities, etc. This insurance serves as a perfect help for those most serious accidents in the construction process.
Personal accident insurance
This insurance is specially designed for managers, sole owners or business partners. This is useful in cases where the injured person can not blame another person for the damage caused to him. This helps to provide assistance during the period for which the injured person can not get income.
Building insurance is very important for construction companies because the damage or the financial loss that has arisen is very difficult to recover. Businesses should realize that the cost of insurance premiums is less than the compensation costs. Therefore, it can be concluded that building insurance is very valuable in order to make the business slow in the long run.