Construction insurance is designed to insure those affected during the construction phase of a building. Whilst a different kind of insurance is concerned with a completed and occupied building, construction insurance is concerned with reducing the financial risk to investors, and builders, of an uncompleted building.
Construction insurance can cover a variety of assets that may be put at risk during the building process. On occasion it is necessary to insure expensive machinery that is used in the process of building. Even if every precaution is taken, on site, there is always the possibility that something can go wrong. Between human error, general wear and tear, unpredictable (severe) weather, equipment failure and other risk factors, there is always a chance that equipment can get damaged whilst being used. It is a good idea to insure building machinery, as it can be very costly to replace. Construction insurance can also cover property damage as a result of accidents or equipment failure. One major risk factor for contractors is the potential injuries workers may suffer during the building process. The correct type of construction insurance can insure contractors, property owners and other liable parties against claims from injured workers. The different contributors to a building’s construction have different insurance requirements. Some of the types of individuals who would need a form of construction insurance are: speciality trade contractors, general contractors and subcontractors. Whilst each need to insure against the same types of financial threats, the form in which these theats arise may vary, depending on the assets or skilled labour which relate to the contractors role in the construction. Keeping good relations with employees is vital if all work is to be completed on time, and as well as possible.
A construction insurance package can be tailor made depending on the client’s personal needs. There are a variety of different types of construction-related insurance and choosing the correct package could mean the difference between a successful building project and huge negative financial implications.