The construction business including the residential, civil and commercial projects forms the second largest industry in India in terms of work force employed and the one with most hazards second only to the mining industry. Construction sites carry high risks as workers need to work in conditions that need extra caution for safety. Also, the workers are regularly exposed to toxic materials, heavy equipment, and dangerous tools, etc.
Therefore, a construction company not only carries the business of construction but also responsibility of well being of those working for it. Hence for doing business like construction, all risk insurance, and other such tools are essential for securing the company. Construction insurance customized particularly for the industry is an important tool used to handle the risk associated with construction projects.
Why Comprehensive Construction Insurance?
With the type of work and equipment used in the construction industry, there are several reasons the business needs to get insurance. Due to the high risk of the accident the owner or contractor is liable for medical treatment in case of injuries, compensation to the family of the workers, etc. Also, any damage to the structure can also lead to a huge loss. Like various other industries this industry is affected directly by government decisions and actions. Apart from these circumstances, there can be numerous other cases of unpredicted events. It is best to get a comprehensive construction insurance policy which covers various expenses. It is also necessary to identify all the risks associated with the project and get a cover which adequately covers all these risks.
Securing the business from all sides
Getting comprehensive construction insurance is crucial for your business. It will not only help cover your business from every part but also has a lot of other advantages such as getting new business. Getting insurance helps showcase to future clients your diligence towards the work, it also helps you manage the budget better as you calculate your long-term operational costs included everything from labor to materials in detail. Key areas of your business which get covered with construction insurance include-
- For the Construction Project
Contractors all risks insurance, as the name suggests the insurance offers protection against any risks associated with contract work. It is ideal for commonly occurring accidents that can take place during the construction process. The insurance provides cover in case of unexpected events or mishaps during the building process such as- theft or damage of materials or tools, abrupt stoppage of on-going construction, and so on. Construction all risks insurance can be tailored specifically for the construction business.
- For the employees
Construction work is risky for the workers as it involves doing work at heights, and working with heavy equipment. The workers are exposed to risk and can get injured due to even a slight negligence by them or their supervisors. Since employers are liable for their health and safety, workers can claim compensation from them in the case of any unexpected event or mishap. Hence getting Employers liability insurance is important and will benefit the business, as the insurance company pays the medical costs or the compensation associated with the claims.
- For the Employers
Personal accident insurance is for managers, sole proprietors or business partners. Since they cannot claim compensation or blame anyone for injury caused to them at work, this kind of insurance is useful. It provides cover to the injured person when they are unable to get income.
- For the third party
Comprehensive construction insurance contains public liability clause which helps the business in case of any damage to third party or individual occurring due to the employees or tools used during the construction work. This is a common insurance used by several businesses that need to interact or deal with customers or people in general.
Finally getting an insurance cover for any business is important and especially for a construction business that involves massive amounts of investments and any damage or loss is difficult to recover quickly. Hence the overall cost of the premium is eventually lesser than the final compensation costs. Securing you construction business from all sides is the key to sustaining your business in the long run.