Construction insurance is a must for every construction project that is carried out. The term construction insurance in itself is given to a multitude of insurance policies that provide coverage for the likes of natural disasters, property damage or third-party injuries.
From building, homes, roads, railways or rooftops, insurance within the construction industry can be complex as there are a series of insurance covers under one umbrella. Thus, having a good understanding of the right insurance policies will help when things do go wrong.
To further explain, an effective builder liability insurance coverage can protect your builders from any injuries or accidents that may occur on the job. On the other hand, builders may accidentally damage property or mishandle tools while construction is underway. Whatever the case, it is crucial to have an in-depth understanding of the need for construction insurance.
Type of Insurance:
Product Liability Insurance
Product liability protects against injury to people or damage to property that comes from the products that you design, sell or manufacture. Suppliers of equipment may be required to maintain product liability insurance, such as suppliers of escalators or heavy machinery in case of any faults within the equipment.
Public Liability Insurance
Public liability (also known as PL) insurance is a common business insurance that protects businesses for injuries or death of third parties, this includes members of the public and/or damage to their property. Public liability insurance is ideal if your builders work nearby to people and their property. This insurance will have your business covered against any claims for damage to the person and/or their property, for 12 months.
All Risk Insurance
The all risk insurance protects against any physical damage to contract works and/or site materials. This insurance may be taken out by either the contractor or the employer. The way it works is if a contractor causes damage to a part of the property that they were working on, the all risk insurance would then allow full coverage of the costs that are associated with amending the damage to the property. This sort of insurance details the specific requirements, such as what risks must be insured against and the amount of insurance that the party is after.
Professional Indemnity Insurance
Professional indemnity insurance is useful as it covers intangibles, including professional negligence, infringement, breach of confidentiality/copyright and destruction and/or loss of documents. In regards to construction, this type of insurance would cover contractors for anything relating to errors in their work or incorrect designs.
Structural Warranty
If you’re building a home or using contractors to build, it may be useful to consider a Structural Warranty. A Structural Warranty policy covers defects in design, workmanship and materials that are used in the construction of a self-build and lasts for 10-Years after completion. A good example of a Structural Warranty policy is Build-Zone. Build-Zone offers an array of Structural Warranty policies that range from social housing, new home warranty, completed housing warranty and much more.
Is Construction Insurance Essential?
Construction insurance isn’t actually necessary but can be essential as it saves a lot of time and effort if implemented. Even the most experienced and highly skilled professionals aren’t protected from potential danger. There’s always the possibility of accidental damage to both your builders and/or the public. Thus, if you aren’t covered by specific policies, you could be in for financially disastrous liabilities.
All in all, construction policies allow you that much-needed peace of mind to both contractors and clients in the event of an unexpected accident to know that they will attain any compensation that they deserve. Therefore, it’s always a good idea to take advantage of relevant comprehensive construction policy where and when required.