Construction sites aren’t exactly the safest places for people to work. The open nature of these places also leaves the project itself at risk, especially when considering surrounding and unexpected circumstances like natural disasters and unexpected harrowing events.
To protect a construction site and its occupants, there’s a special type of insurance plan. This insurance plan and/or policy is known as construction insurance. Construction insurance provides a significant amount of coverage for construction-related materials, on-site and off-site risks, the employees themselves and even the finished establishment for any kind of business.
Why consider getting construction insurance?
Construction sites and their corresponding operating processes are subject to accumulating a significant amount of loss exposures or losses that can occur while involved with the construction project itself.
The most common insurance policies used within the construction industry includes liability insurance, builder’s risk insurance and performance bonds. Although each can get included in a ‘complete’ construction insurance policy, some plans don’t include all coverage options, as they can be customized to fit the needs of the project itself.
Liability insurance naturally protects the professionals working on the project against any losses incurred while on the job. Builder’s risk insurance covers damages against the construction site, while performance bonds act as a surety against the completion of entire property itself.
Construction insurance isn’t only suited for construction projects situated within the commercial industry—there’s also a variety of different construction insurance options for home-based construction projects, particularly for homeowners overseeing the construction of their new home.
Why new homeowners should consider getting construction insurance
Homeowners need to secure an adequate enough insurance plan to cover losses suffered during the construction of their new home. For homeowners, construction insurance can protect the entire property against losses, containing coverage for the home’s foundation, framing, roofing and the final steps of the process itself.
Construction insurance also covers the building materials used in the process, especially if the site is prone to theft and/or other situations that result in the loss of building materials. It can also cover the transit of construction materials to the construction site, in addition to materials stored off-site. Naturally, these plans do generally include some form of liability insurance to protect the property owner and/or the people working on the construction site/project.
Getting construction insurance is strongly recommended by any insurer for construction-related projects. Construction projects and their corresponding sites are high risk areas for both property and professionals working in the area. Thanks to that, it’s only natural to get protection against those unexpected circumstances happening on-site.