If you are the owner of a construction company, you should be well aware that your workers and your clients actually face different types of risks involving the construction work you are doing. Any sort of negligence or simply bad luck can result in catastrophic eventualities that lead to injury, loss of lives, and damage to property. Any construction work involves a staggering amount of money involved and loss of money as compensation or liability to such eventualities may lead the construction company in financial ruin. For this reason, it is vital for the company to protect its interest by getting construction insurance.
For any type of insurance company, getting the right coverage provides them with the best possible protection from any unnecessary financial loss. There are different policies available in construction insurance. Knowing what you need gives you the best chance for protecting what you deem is best for you.
Types of Construction Insurance:
Liability Insurance – this type of insurance protects contractors from third party accidents, injuries, and damages to property. Basically, this insurance will protect you from any financial loss that occurs when an employee cause damage to a property or injury to others. If you client gets hit by any falling debris and gets injured, this is the insurance that will help cover for the cost.
Workers Compensation Insurance – this type of insurance protects contractors from having to pay benefits of employees getting hurt on site. The coverage involved are medical benefits, rehabilitation cost, and lost wages. While this type of insurance is not mandatory in other states or countries, it is still an important insurance to get, especially if you value your workers and that you do not want to shoulder the necessary finances should such eventuality do happen.
Contractor Bonds – this type of insurance is a guarantee between Construction Company and the client that the construction project will be accomplished to satisfactory results. This type of insurance is a surety bond that provides protection to the client. These days, more and more clients will not risk hiring a construction company that does not have a contractor bond.
If you are in the business of construction, it is in your best interest to have your company protected with the necessary construction insurance so that you do not risk any financial ruin in case something serious occurs that may force you to settle claims. Not getting insurance may be a risk you will not be able to afford.