Know various types of construction insurance
The construction industry comes with a lot of inherent risks. Since construction sites are crammed with workers, contractors, machinery, and materials hence, these sites are vulnerable to various accidents, damages, thefts, and injuries to workers. Though the latest technologies and advanced machinery can alleviate some of the risks, by choosing the right construction insurance coverage, you can mitigate most of the risks. Many popular insurance companies offer construction insurance, cyber insurance, and other business insurance policies so that you can run your business in a hassle-free way.
Construction insurance plays a pivotal role in the construction industry. Construction insurance assures construction company owners and contractors against any burglary, loss, or damage to the construction site, materials, or machinery, and from third-party compensation litigations. Let’s take a look at different types of construction insurance that a company should possess.
General liability insurance
Every business, especially those who are in the construction sector, should purchase general liability insurance to run their business smoothly. This type of insurance safeguards your company from various liabilities, including injury claims and medical expenditures. General liability insurance plays a pivotal role in protecting your business from claims because of damage you may cause to a customer’s property, or from impairment caused by your installed product, such as defective plumbing or inappropriately sealed windows or doors. But this type of insurance doesn’t cover damages that result from professional inattention. For that, you need to apply for other types of liability coverage.
Professional liability insurance
Mistakes are common in every field. Professional liability insurance covers mistakes in design or value engineering on the job. General liability insurance covers bodily injury and or property damage, but this type of insurance covers those errors that can have a financial impact on your construction project. This insurance covers only the liability of your error, not the cost of revamping or rework.
Builders risk insurance
This insurance gives protection to builders, contractors, and construction company owners if there is any injury, loss, burglary, or damage to materials, design, and machinery during the under construction phase. The developers, contractors, and construction business owners can refund the cost of damage. This insurance is applicable for new construction projects or remodelling projects. The responsibility of the business owner or contractor of the project is to ensure that the interests of all those like subcontractors, equipment owners, and others involved in the project are covered properly. This type of insurance can be purchased along with general liability insurance.
Worker’s compensation insurance
This insurance gives coverage to the workers or employees who are associated with the construction projects. It gives them protection against injuries, death, or other diseases during their course of employment. This type of insurance ensures that the workers get fully compensated and they don’t get sued. This insurance covers the cost of medical expenditure, disability income, rehabilitation cost, and compensation to be paid to the relatives of the deceased employee. This insurance is beneficial for business owners as it protects them from compensation claims.
Automobile liability insurance
Construction sites often use heavy trucks or vehicles for the transport of material, machinery, and workers. In case of any physical injury or property damage of the construction site, the company or the owner of the vehicle is liable to pay. This type of insurance covers compensation claims made by the third parties in case of injury, damage, or loss at the construction site.
Pollution liability insurance
The risk of pollution at the construction site is always high during the project. All contractors should have contractors’ pollution liability insurance because of several environmental concerns and rigorous laws to protect it. Contractors’ pollution liability insurance offers protection to contractors if any third-party claims are made for environmental pollution caused during the execution of the project. General liability policies don’t include pollution liability, though a certain amount is added to offer some limited coverage.
As technology is evolving, construction companies are also relying on technology. The companies are using software platforms to manage their operations and machinery and are also integrating smart technologies into their job sites. Thus, they need to protect all sensitive data and that’s why they need cyber insurance to secure their data from fraudulent people. Even small construction firms should purchase cyber insurance because nearly half of all cyber-attacks target small businesses.
These are various types of construction insurance that a business should invest to run its operation properly.
Surewise is an eminent company that offers various types of construction insurance policies, cyber insurance, business insurance, and many more. But before purchasing a construction insurance policy for your business, you must go through what are the things covered by the policy.
To know more about the company, please visit the official website of Surewise.