In business today, there is one certainty, having the appropriate level of insurance pays off. Litigation against companies due to injury and damage to property if rife, especially in countries which are renown as litigious like the USA. Medical malpractice is the most prevalent with the high payouts awarded.
Other industries also need to be insured up to the eyeballs, including the construction industry. Operating a construction company has the usual business risks and a whole lot more, so it’s not for the faint-hearted.
Lawsuits will be unavoidable as the business of building and construction is fraught danger, so how do business owners cope? They work hard at lessening the risks with ample insurance cover. A specific insurance policy that covers the costs in the event of a workplace accident including injury or damage is essential one way the owners and operators can sleep at night.
A specific contractor’s insurance can protect against claims, which can be substantial, and may include legal expenses too even if the company is found liable.
Today insurance has another critical role to play. Prospective clients undertake a verification or assessment process with potential construction works suppliers before moving forward. This process is deemed necessary for the client, so they’re not personally held liable and thus will avoid incurring any costs in the event a contractor on the project injured, or there’s damage done to the property.
More so, in this line of work, it’s hard to secure legal building projects without contractor insurance as local and federal government insist on it. Therefore it’s not should we get it or not. It’s how much do we need? Here’s some more information on liability and workers compensation insurances which can be wrapped up as a package within your contractor’s insurance policy.
Liability & Workers Compensation Insurance
1. Liability Insurance
What is liability insurance? Check out this definition in Wikipedia. Essentially it protects the purchasers against lawsuits and similar claims. Therefore it is likely to cover for claims arisen from personal injuries and property damage. However, it’s worth mentioning that there is no ‘one size fits all’ with any insurance.
All claims are assessed on their merit and reasons for rejection from the insurer are intentional damage and contractual liability. Any payout is not made to the insured.
2. Workers Compensation Insurance
This type of insurance compensates the injured workers for their medical expenses and for the lost wages and gives out death benefits to the involved families that have lost a friend in the course of the construction job. Here’s a good article on it providing tips for business.
Whatever business your in, insurance is a must and more so when your company has a high degree of risk like the construction industry. Make sure your business has sufficient contractor’s insurance that will not only protect your business but also allow your prospective customers to tick the compliance box to qualify as an approved, potential supplier.
If you’re an employer, the last thing you want is your workforce to suffer from injuries and work-related illnesses. Employees have the right to seek out personal injury attorneys should they feel their injuries are that severe and worth filing a claim. This is something you want to avoid at all costs, so before you set up a business, it’s wise to research health and safety and work out what you need to do to create a safe working environment. Ensure that your office or site meets current standards and regulations.
Take steps to identify hazards and address any issues that are reported by your staff team. Keep on top of maintenance and cleaning tasks.