Should a hazard affect a construction job, this could pose a liability risk to the company. Liability risks arise when a business unintentionally harms a third party. Liability risks in construction could impact performance and the outcome of a project.
Construction businesses should consider various forms of insurance to protect their projects, clients and employees. Doing so will help the company better protect their risks and finances in case a problems occurs.
There is always a chance that a construction company could fail to complete its job on time. Doing so could inconvenience a client who likely has an expressed purpose for a project. Furthermore, failed projects may cause a client undue financial losses.
Surety bonds are special insurance that guarantee a client that you will complete a job. If you fail to complete the job, you then have to compensate the client according to the terms of the bond. Bonds do not offer a payout. They simply guarantee that your business has the assets to compensate a client.
Professional Liability Coverage
We all make mistakes. Construction companies could make faulty products or give bad advice. These mistakes could severely compromise the safety of the structure. A client and business might have to spend significant time and money repairing damages.
Should a mistake occur, a client might sue you for damages the construction causes. Professional liability insurance can help you compensate a client for your unintentional mistakes. It can also help you fight legal claims a client makes against you.
General Liability Insurance
Most businesses use a degree of general liability insurance to cover them from common risks. These may include slip-and-fall risks on job sites, or other injury risks posed to clients.
However, general liability insurance for construction sites is often complicated. Some general liability policies exclude construction sites because of their comparatively high risk. Speak to your insurance agent about the best way to cover general liability risks in construction.
Employees could easily get hurt or sick on construction jobs. Should such an incapacitation occur, the employee might have to miss work to recover. Workers’ compensation laws often require employers to cover employees’ expenses while they recover. Workers’ compensation insurance might help you cover these costs. You won’t have to deplete your finances by helping an injured employee.
Insurance Agent2000 has your construction insurance needs in mind. If you need coverage, call us at (925) 827-0510 for more information. One of our agents can help you get a fast, free Pleasant Hill construction insurance quote.