Life can be unexpected, and this is why the insurance industry is one of the largest in the world. Insurers provide that crucial "peace of mind" for those who provide a product or service to others so that they can ply their trade with protection. Some industries are more unpredictable than others and construction, in particular, is one of the most dynamic. After all, the contractor may start off with a piece of virgin land and be expected to go through many different stages, as they create the structure in question. With so much uncertainty in the process and so many external risks to consider, it is so important for the contractor to get the right type of coverage. What should they consider?
Theft and Vandalism
It is notoriously difficult to secure a construction site, even with best efforts in play. Some people may view such a site as a potential treasure trove and want to relieve the contractor of their valuable equipment. Often, it's not practical to remove the equipment to a safer location at night, and there's only so much that can be done to secure a site that is bordered by a temporary fence.
While protection for theft is important, vandalism must also be a serious consideration. Some people seem to have a chip on their shoulder and may want to take it out on the building or equipment. The authorities may never catch them, and therefore, the risk is yours to bear.
Fire Risk
Even if would-be trespassers keep their distance, fire can often break out in a building that is under construction. This structure may not have any suppression systems in place, and the damage could be catastrophic.
Quality of Work
Once you have secured coverage for destruction, damage or theft, you need to look at the quality of your work. You may need to warrant the work of your subcontractors as well and should get coverage to protect you against any errors or omissions.
Proof of Coverage
These days, the major stakeholders will not take any risks and will want to ensure that everyone involved in the project has adequate coverage. You will invariably need to provide proof of comprehensive construction insurance before they will sign off on the project or lend money at any stage.
Tailored Quote
No two jobs are the same, and you may face some additional risks not mentioned. This is why it's important to talk with an experienced broker so that you can get the right type of coverage and sleep soundly at night.
Share11 July 2019
Hello! My name is Hannah and this is my money blog. I decided to start writing about this topic after my recent visits to see a financial advisor. The advisor was able to give me lots of fantastic advice about how I could improve the state of my finances. I had been spending too much money and not saving enough and it was really starting to stress me out. Thankfully, by following the advice given to me by my advisor, I have now started to take control of my money. I hope you enjoy reading this blog. Thanks for stopping by!