What You Need To Know About Construction Insurance

What You Need To Know About Construction Insurance Image

There are many risks involved in a construction site. Usually, there will be many people working on the construction project from the initial stages to completion. There are many resources that will be used, ranging from monetary resources to human resources. A construction project will require a lot of financial resources, therefore as an owner, you want to minimize costs, and cater for any eventual risks that might arise. Like any other type of insurance policies, a construction insurance policy is used to protect and safeguard all the parties operating on the site.

So here's what you need to know about construction insurance. There are a number of policies that you could take, depending on the needs of your projects. Even though compensation may not fully recompense for lost lives, it will help at some other times in case of financial crisis. Taking the right cover will help cater for unexpected costs and damages in the construction process. Here’s a discussion of the common policies:

Liability Insurance
This is one of the crucial policies that you cannot ignore. It is designed to protect contractors against property damage, injuries, and accidents to third parties. Normally, a construction company assumes you are working on somebody else’s property. If one of your employees causes damage to the property against the contract, it will be covered by this policy. Additionally, there are many moving objects on the construction site, if a client or other people are accidentally hit by say a falling object, a liability insurance policy will cover such costs.

Workers Compensation Insurance
This is a common term used to refer to a compensation system that helps companies settle for employee benefits in case of injuries while at work. These benefits will cover for lost salaries and wages, medical bills and rehabilitation costs on the employee until they get back to work.

Many states will have different approaches to this policy. However, most of the states require that if you have more than one employee on either full-time or part-time employment, you have to take the cover. even though it might not be compulsory to take the workers' compensation insurance, it is a valuable policy for your company’s management of risks. With the rising costs on medical bills, without this policy will mean that you will be liable for all the medical bills if an employee is injured on the job.

Contractor Bonds
This is another crucial insurance policy that safeguards both the client, in this case, the owner of the premises under construction, and the construction company. Contractor bonds act as to guarantee that the project will be completed without any financial hitches.
Contractor bonds are becoming a requirement nowadays, where both public and private companies are requesting for these policies for you to contract with them. It is therefore important to equip yourself with one before you begin working on your project.

There are many types of construction policies that both the owner of the project and the construction company could take. Contact us today at S.T Good Insurance of Florida for a quote at (772) 287-3625.

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