If you work in the field of construction you will need to ensure adequate protection from harm, injury or loss by having the correct insurance in place. Construction insurance, which is sometimes called Builder’s Risk or All Risks Insurance has been designed to protect building firms and incorporates several different types of insurance under a single banner. It’s a comprehensive set of coverages for those that operate and work in the construction industry.
According to NimbleFins, one benefit of buying an all-in-one construction insurance policy is related to admin. With only one premium to pay and one renewal date, you’re more likely to stay on top of your insurance. Having one policy instead of multiple separate policies with different renewal dates helps eliminate oversights that could occur from having separate premium payments for each policy.
As this protection product has been designed specifically with construction companies in mind, it has become a popular option for businesses that want to make sure they are suitably covered against liability claims. Including financial settlement payments arising from errors, incidents, and accidents that occur during business operations.
What does a construction insurance policy cover?
The coverage that comes with construction insurance can include policies that protect from damage or injuries to third parties, provide employee protection, or even insure vehicles and equipment against losses or damage. Injury compensation for individuals can be provided as well as payments for medical treatments or legal fees arising from claims.
Policies that may be included in a construction insurance policy may be.
- Public Liability Insurance
- Employers Liability Insurance
- Product Liability Insurance
- Personal Accident Insurance
- Professional Indemnity Insurance
- Business Vehicle Insurance
- Tools and Equipment Insurance
Not all policies will include all the types of listed coverage. And other coverages might also be desired, such as cyber insurance or legal coverage. Policies are tailored to each business so if you do not use any vehicles, for example, you will not require business vehicle insurance.
Policy limits can also vary depending on the type of business being performed. Levels of liability coverage can fluctuate based on the size of the company and the work being carried out. Small operators that deal with simple buildings and repairs will require much lower limits than companies that perform large-scale construction operations.
Some policies are required by law, like employers’ liability insurance, which will be required if you employ any staff. Others are optional additions to the main policy but make good business sense to purchase. Public liability insurance, for example, will protect the business from any claims made by a third party against the company for loss or injuries that are caused through the course of work.
Who should purchase construction insurance?
This type of insurance will be required by anyone that operates a construction business. While the coverage can be tailored to individual needs there will still be certain policies required to provide suitable protection. As a building or construction site is wrought with potential risks, protecting from injuries and damage caused by trip hazards or falling objects is sensible even if not legally mandated.
The businesses that need to obtain construction insurance include:
- Home Building Companies
- Home Improvement Companies
- Heavy Contractors (road builders, bridge installers, railroad builders)
- Specialist Contractors (plumbers, painters, electricians, joiners, etc)
Along with the standard insurance coverage that will typically include policies for public liability and employers liability, construction insurance can also contain special insurance that is specific to the type of business being operated. Things like pollution insurance provide different levels of protection from exposure to bacteria or fungus, while extra expense insurance covers costs associated with delays in performing work due to weather or damage at the building site.
This includes self-employed builders who need to secure insurance coverage as well.
How to compare construction insurance quotes
When it comes to determining the policies and coverage needed for your business it is important to assess adequate limits and other factors. An insurance broker or advisor can help to determine the financial amounts needed to provide enough protection and shield your company from claims. Buying your policy directly from insurance providers can be an option, but this can be limiting in the number of policies available.
Having the ability to see policy quotes from numerous providers can mean finding the best price for your policy and see the changes to premiums quickly by adjusting limits or excesses to suit. Coverage amounts will fluctuate from company to company depending on your business’s exposure to risk, but items like public liability insurance typically range from £1 million to £10 million as needed. Policies will need to have limits high enough to give protection against claims that the business may be liable for.
Comparing quotes is especially important these days, with news that professional indemnity insurance quotes are rising in the construction industry.
For these reasons, using a reputable comparison engine and/or specialised broker can be the best options for purchasing construction insurance for your company. The tools provided by a comparison site will allow you to quickly compare quotes side-by-side, and review limits and policy premiums. And a broker can help source coverage if you’re having trouble finding a policy at the right price or if you have questions. As with most insurance, the cheapest is not always the best so it is important to make sure that limits, coverages, and excesses align with your business requirements.