Construction Insurance Cover

The magnitude of risks involved in the construction industry require a construction company to posses the right construction insurance cover. General contractors (industrial and commercial), heavy contractors (infrastructure, road and street) and trade contractors (exterior and interior) are the broad classification of customers for construction insurance providers.

Anyone who is working or otherwise at or near a construction site is at a high risk of being in an accident due to a construction project. Any such incident would be the responsibility of the construction company. This means the company must have an appropriate policy to protect its employees, management, inspectors, surveyors and the public on/around the construction site.

You can get a comprehensive construction insurance cover package including the basic coverage. This includes cover for any work place accidents, illness or injuries to the employees; vandalism, theft or damage at the work site; and machinery and plant. In addition to this basic cover, you can get useful add-ons that specifically meet your company’s needs.

Some of the additional coverage options for a construction insurance cover are as follows:

  • Public Liability – Covers against injuries or damages to an individual (public) or third party’s property caused by your business.

  • Employer’s Liability – Any company that employs staff is legally required to have this cover. This covers employee’s claims for any work related injury or illness.

  • Directors and Officer’s Liability – Protects the directors and officers against wrong business decisions or bad advice.

  • Materials and Stock – Covers the company’s stock and contents.

  • Business Interruptions – If your business is abruptly shutdown because of an unexpected incident like theft, fire, storm and other covered risks, you will be covered for the loss.

  • Professional Indemnity – Any professional neglect, error or omission is covered under this option.

  • Material Damage

  • Contract Workers

  • Business Support

When shopping for construction insurance cover, the following are the points you need to keep in mind.

  • Check if the provider offers good risk control options as part of your policy package.

  • Ensure your insurer is familiar with handling claims related to your work, location and other nuances to help you with speedy payments.

  • Find a provider who can offer a good breadth of coverage, covering all your construction coverage needs: general liability, workers’ compensation, auto liability, property and excess liability, surety coverage, professional liability and marine cover.

  • Understand the underwriting rules of the provider and the hidden costs of the policy.

Insurance providers customize their construction insurance cover and price based on the contractor type, account size, geographic area, line of business and risk exposure.

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