Urbanization has led to the development of high-story residential areas consisting of flats or apartments.
Owning a construction business is like a dream for many. What’s better than using a set of tools, being your boss, and creating amazing places where people can live and work.
However, the things that make these buildings appealing can also result in some losses as well. As attractive and appealing as these buildings might look from the outside, they bring along their set of risks for those who inhabit them. These might be caused by natural as well as man-made perils which are often not considered while one purchase or build up his residence. As a result, one is completely unprepared financially to bear the huge costs of repair or renovation.
Let’s look at the risks that you might face and tips to tackle them through certain examples as follows:
- 25- year old Jairam Yadav, a junior engineer at M.S Construction Company, died when accidentally a loader fell on him.
- No matter how hard you strive, accidents do happen in the workplace. For this reason, always enforce safety regulations and train your employees on safety regulations
- Last year, Twilight Construction built independent villas in Nainital. Recently, the residents have started detecting subsidence or lowering the level of the land (due to high clay content).
- Land sliding might be common in hilly areas or those that have excessive rainfall. The most common way to prevent it is to plant small shrubs on the slope for better water retention. Some special plants protect the topmost layer of the soil in mountainous regions
- You must also ensure that the area has proper drainage facilities to prevent subsidence
- Even with all measures properly taken, you must get the ground level checked and repaired from time to time as it is not possible to curb it completely
- Singh has recently purchased a new office in M.S Tower, constructed by K. S Realty. His office is located on the topmost floor giving a splendid view of the city. But, as it is said, good things don’t last forever, something unfortunate happens. With bad weather conditions prevailing over the past few days, lightning strikes on the roof and completely shatters the ceiling and the glass doors and windows of the office. It also destroys the contents which now need to be replaced or renovated.
- Natural perils like floods, landslides, cyclones, storms, and earthquakes,s, etc. are beyond one’s control. Therefore, it is necessary to keep in consideration all these unexpected natural perils that might vary from place to place. For example, coastal areas are more prone to floods and cyclones and certain others to earthquakes
- Try to invest in properties that have earthquake-resistant structures and also check the quality of the material used for the same. Invest in a high-level area to minimize the damage in case of excessive rain or floods
A construction business may be liable for all the finished projects, however, if the project quality doesn’t meet with the global quality standards, your buyer could lose money and look to you for recovery of losses. Obviously, no one wants to be known as a company that does poor work, and therefore, it is imperative to think—are the measures mentioned above enough to protect you from unexpected mishaps? The answer is surely negative. Also, you might not be able to bear the financial brunt yourself at all times!
It is better to avail of a building insurance policy that covers your property against such natural and man-made perils which also include any damage due to aircraft collision, strikes, leakage of gas pipes, etc. The damage to a building caused due to depreciation, latent, or manufacturing defects is excluded from the policy. So, one should thoroughly study the exclusions and coverage in detail to remain clear about the whole process at the time of making a claim.
With the proper training, foresight, and a comprehensive insurance policy, it is feasible to successfully navigate all the risks and grow as a company.
About The Author
Shivani
MBA Insurance and Risk
She has a passion for property insurance and a wealth of experience in the field, Shivani has been a valuable contributor to SecureNow for the past six years. As a seasoned writer, they specialize in crafting insightful articles and engaging blogs that educate and inform readers about the intricacies of property insurance. She brings a unique blend of expertise and practical knowledge to their writing, drawing from her extensive background in the insurance industry. Having worked in various capacities within the sector, she deeply understands the challenges and opportunities facing property owners and insurers alike.
