Undeniably, many risks are associated with every construction project. Like, during the construction, process equipment can damage or fire engulfed some part of the project, or there may be theft of some construction items. Then there are many such issues which can arise during a project which was not even anticipated by the business.
Further, as a contractor, there are strict project deadlines that you have to meet.
As every construction activity invites a wide range of risks and damages, it is indispensable to buy a construction all-risk insurance policy which offers complete protection against various kinds of civil construction risks like, fire, lightning, burglary, theft, flood, collapse, etc.
Read More: Ten Scenarios When Your Claim Gets Rejected Under the Contractors’ All Risk Policy
Accidents can happen at the construction site
Did you know, last year two laborers suffered serious injuries after falling off the third floor of the under-construction building at Hanjawadi in Hadapsar, Pune?
Construction sites are dangerous places where injuries and deaths are common due to factors like electrocution, mishandling of tools or machinery, falling off height, ailments, etc. Even a nail standing up from a wooden plank can seriously harm if it pierces into some unsuitable shoes.
In fact, the rate of accidents in the construction industry is high not only in India but other parts of the world also like the UK, USA, China, etc.
What if one of your workers gets injured while working on the machinery on the construction site? Now you would have to pay compensation along with the medical expenses of the injured worker.
In this situation, a construction all-risk insurance policy can play an important role by offering financial coverage to the injured worker.
Similarly, if the injury is caused to a third party other than the insured’s own employees or workmen due to insured perils, the construction all-risk insurance company comes forward to offer the coverage.
Material damage is a common thing
Imagine, the dam construction work is in the process when the construction site faces the brunt of an earthquake or a fire erupted at the construction site due to short-circuit in the machinery. It can cause severe damage to your goods, including machinery and equipment. It means, now you would have to shell out money for the procurement of industrial items.
The construction all-risk insurance policy provides coverage for property loss or damage by perils, including man-made and natural, like fire, flood, storm, earthquake, negligence, etc.
Extra protection is available
It is feasible to expand the coverage available under construction all-risk insurance policy to get extra protection. It means you can buy add-ons along with the construction all-risk insurance plan to get a comprehensive coverage. Here are some of the add-ons through which you can extend your cover=
- Loss or damage to surrounding property
- Maintenance visit
- Construction equipment like shuttering materials, scaffolding, etc.
- Rectification of faults during construction
- Escalation
- Removal of debris
In short, a construction all-risk insurance policy can serve as the perfect tool that can shield businesses against various types of risks during commonly experienced accidents at the construction site. Construction businesses should seriously think of buying construction all-risk insurance in order to ensure that when accidents happen, they do not suffer any financial losses.
In fact, the cost of insurance premiums is far less as compared to the lawsuit and compensation costs that would require being paid at the time of loss.
Read More: Risks You Should Consider While Running a Construction Business
How to Buy Construction All Risk Insurance Policy?
Now that you clearly understood the benefits of a construction all-risk insurance policy, the next step is to purchase it. However, the presence of various insurance companies in the market is enough to confuse even a sensible person like you. Therefore, instead of getting jumbled among available options, take the help of SecureNow—a leading corporate insurance advisor.
Here, experts will listen to your business requirements and give you policy quotes obtained from different insurance companies. You can easily compare the available options before choosing one.
It’s about the financial protection of your business, so choose the right construction all-risk insurance policy with SecureNow!
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.