What is Construction Insurance? What it Covers

HVAC Contractor in Brownsville TX involves workers, transport vehicles, heavy equipment, and other necessary materials like cement bags, hollow blocks, steel rods etc. Construction is a risky work and serious injury or death of workers or damage to property is a common issue. So if you are involved in construction industry, it is very important to carry construction insurance. Construction insurance is an important consideration for construction professionals including builders, owners, contractors etc. It will serve as the greatest protection against any liability that may arise out of construction.

The unpredictable nature of the construction industry can make you pay for the tons of damages during the course of the construction. Construction insurance helps in covering a multitude of possible issues that arise during construction. The cost of the insurance premium would be many times lesser than the cost of these issues. This is why many construction companies consider construction insurance as an essential part of their construction budget.

Four main areas it covers
Construction insurance has many types of policies covering a wide range of losses arising during the construction. Construction insurance provides coverage to construction professionals from claims resulting due to various types of risks in the form of accidents, thefts, damages, and injuries. Some of the common construction insurance packages are Public Liability Insurance, Employers Liability Insurance, Contractors All Risks and Personal Accident Insurance.

Public liability insurance
Public liability insurance covers your business when you or your employees cause bodily injury or death to an outsider or damage a third party’s property during the process of construction. A third party could claim that they have suffered a loss because of your negligence and sue you or your company for compensation and damages. Public liability insurance claims are sometimes said to run into hundreds of thousands of Euros. Public liability insurance policy helps you by picking up the cost of the claim.

Consider an example where public liability insurance provides you a cover. When one of your employees working at the construction site, drops a piece of equipment which falls to the street, injuring a passing pedestrian or damaging a person’s property. He can sue you for your employee’s negligence and claim against your firm.

Employers liability insurance
Employers liability insurance covers you against claims from your employees, if any of them suffers physical injury or death during the construction process. Public liability insurance covers your business against claims from third parties, where as employers liability insurance covers you from your employees’ claims.

For example: When an employee working at the top floor at the construction site falls and suffers a serious injury or dies, he or his family members can claim against your firm. The employers liability insurance can help you by paying the employee’s claims.

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