Protection On The Job Site: A Guide To Insurance For Builders And Contractors

The construction industry plays a vital role in commerce and industry. Without builders and contractors, life in the modern era would not be anywhere near as convenient as it is for many business owners. However, the construction industry is full of risk, and this is why people who work in this field need all the relevant forms of insurance cover in case the unexpected happens. Below is guide to protection on the site and how can help you.

Understanding Why You Need Insurance

For builder and contractor in the building industry, anytime you hit the work site, you are taking a huge risk. This is because on every construction site, both the engineers and the unskilled workers work with equipment and machinery that might cause accidents, injuries and even death. This does not mean that the machines in question are faulty. In many cases, accidents and injuries on the work site might be a result of human error and unforeseen circumstances. Below are the insurance policies you need to protect yourself from these and other unexpected occurrences.

General Liability Insurance

This policy is also called the commercial general liability insurance (CGL). It provides cover to workers on a construction site in cases of property damage, bodily harm at the workplace. Essentially, this policy protects the contractor in cases where workers sustain an injury on site or where visitors to the site are injured during the course of their visit to the construction site. In both cases, the contractor is liable to pay compensation to the victims. However, a valid general liability insurance policy means that the insurer will pay the compensation and not the contractor. This policy is an important one in the sense that there are instances where contractors will not be offered construction projects if they have not taken out this form of insurance. Among other things, this policy covers faulty workmanship, job-related injury, advertising injury and even errors made by the workers on the site.

Builders Risk Insurance Policy

This policy is also called the course of construction insurance policy. It is quite comprehensive in the sense that it covers a broad area of risk as long as those risk. Typically, this policy offers protection in cases of damage or injury caused by fire, vandalism and the weather during the construction stage of the project. Other items covered by this insurance policy include damage to building materials, damage to the foundation of the building, damage to temporary structures and damage to paving, fences, outdoor fixtures and the like.

Workers’ Compensation Insurance

This policy also called the workers’ comp or the workman’s compensation policy. This policy protects but workers and contractors in cases where the employees are injured on the site. Among other things, this policy covers medical expenses, missed wages, legal fees and ongoing recovery due to on site injuries. In cases where the accident leads to death, the policy will also cover death benefits and funeral costs. This policy is required by law for builders and contractors in the building and construction industry. In many cases, not having a valid workers’ compensation insurance policy may deprive the contractor of contracts in the building industry. In cases where the contractor goes ahead to get contracts without having this policy, this would constitute a breach of the law and the appropriate sanctions will be meted out to the contractor.

Errors and Omissions Insurance Policy

This policy is also called the professional liability insurance policy. It provides coverage for the contractor or the builder in cases where there are claims arising from errors made by the engineer or the contractor. For instance, if an engineer makes an error in calculating the structural requirements of a particular building, this will lead to problems later. If the building collapses and there are injuries in addition to structural damage, the engineer is liable. In this case, a valid errors and omissions insurance policy will protect the engineer in question.

Commercial Auto/Truck Insurance

This insurance policy covers the contractor or the builder in cases of accident while conveying building materials to the site. It also protects the contractor in cases where building materials are lost or damaged during an accident. In cases where trucks and other vehicles belonging to the contractor get involved in an accident, this policy will take care of injuries, damage to the vehicles and even death.