Construction is a very demanding and aggressive industry. While we work on our shops or provide construction services to our clients, a suitable construction liability insurance company must be sourced to protect the assets and humans on site. A good construction liability insurance will protect you from any property damages or personal injuries suffered on the construction job.
A lot of jobs, especially those on government contracting, require the provision of evidence of liability insurance as part of the prerequisites for approval. Subcontractors are also expected to provide evidence of liability insurance before they can start participating in a construction gig. There are lots of benefits of construction liability insurance. Let’s look at some of these.
Benefits of construction liability insurance
Construction liability insurance will take care of damages while at the same time indemnifying you from lots of legal tussles. The following are the benefits of having construction liability insurance:
- Helps to protect your company against property damage.
- Helps to provide compensation to anyone that might be harmed in the course of the remodeling or construction project.
- The insurance will assist in covering damages and costs once judgment has been passed.
- Just knowing your property and employees are protected helps to provide a level of value.
- Construction liability insurance can help to offset legal fees and other related costs like court expenses or expert witness expenses in the event of a lawsuit.
When construction liability insurance is needed
The following are some practical scenarios where construction liability insurance is needed.
- Personal injury claims – the insurance policy may be used to cover medical fees, funeral expenses, or court-awarded payments.
- Damage claims – the policy can protect your firm when your firm destroys the property of a customer or any other damage that your company might be directly responsible for during the project execution.
- Product claims – any claim related to the damages caused by your equipment, e.g., the installation of the building equipment, can be covered by the insurance.
- Copyright claims – a policy might come in handy if you get sued by another company because your designs are an infringement of their copyrights. This could happen if you come up with a design that is almost identical to that of your competitors.
Construction liability insurance cost
The costs of your policy will vary depending on the perceived risk of the project you will be undertaking. For instance, if you run a business that has very low risk, you might want to go with a coverage that is under the owner of the business as opposed to liability insurance. Commercial contractors typically have a high risk due to their nature of work. For this reason, contractors that work on certain high-risk projects like roofing or those that work in highly specialized trades might pay more for their policies. But if you consider the headaches the policy will save you as opposed to the premium you will pay, you will realize that the return on investment is actually great.