Why Your Construction Project Needs To Be Insured
If you are trying to find out what kind policies are needed to insure construction projects
, as well as to know what kind of risks need to be covered by insurance policies, this is the article for you.An insurance underwriter, to be able to assess a risk, needs to have a full and complete description of both the project and the works. Also, method of construction to be used, location of the site including geographical and topographical conditions of the site proposed.
Additionally, they will also need to know the schedule for the project, inspect the blueprints, and gauge the contractor's experience in this type of construction.
It is accepted that contractors face exposure to damage to the works which are referred to as Material Damage. There are a wide range of policies in place to protect against these damages.
Contractors Plant and Machinery All Risks, Erection All Risk, Contractors All Risk, and Civil Engineering Completed Risks are some of the kinds of policies that cover the Material Damage that contractors face.
It's also possible that one will have to compensate third parties for claims made in regard to property damage or personal injury due to conditions of the project. Liability Insurance will cover such claims and can be found in "General Third Party Liability/Public Liability" and "Employers Liability including Workman's Compensation" type policies.
Depending on the particular stipulations in the policy, the contractor can default.
Other coverage provided by the Contractors All Risk Policy, the Erection All Risk, and Civil Engineering Completed Risks will give coverage for construction projects to protect against any losses which can be caused by a myriad of factors. These policies cover everything from theft and burglary, earthquakes, strikes and civil unrest, hurricanes, and even fires.
If a project is not completed on time, the employer may turn for compensation to the Advance Loss of Profits policy. The Erection All Risks or Contractor's All Risks are the policies that establish how much insurance is needed for the project.
These policies address coverage for third party personal injuries, damage that occurs to the project, and damage to property which results from contractor negligence.
When it comes to major construction project sites there are usually several representatives from legally independent businesses working together. Determining the injured third parties on the site can be difficult.
The injured parties can include anyone from sub-contractors and people working on the project, to neighbors of the location where the construction is taking place.
This means the party, or parties, that are responsible for the injury or loss will be identified. Furthermore they will attempt to prove that it was that person's culpable conduct or negligence which caused their particular loss. General Third Party or Public Liability protection steps in here.
Public liability policies work by reimbursing the contractor for any amounts that they are legally liable to pay in these situations.
This will serve as the compensation due a third party for whatever damage or bodily injury that happens to their property. However, the injury and/or damages have to be a result of carelessness of his own or inconveniences that are related to the work.
The employer's liability is akin to the public liability policy. However, this policy enables the contractor to compensate his employees for bodily injury or damage to their property.
Similarly to the public liability policy, the damages in question must have been caused by the negligence of the employer and the related works.
As regulated by the Factories Act and other laws, contractors have a legal duty to make sure all employees enjoy a safe job site.
Safe pant, tools and equipment, as well as a working condition which is considered safe must be provided by the employer. Sufficient supervision by people qualified to do so both on the site as well as for the work is the employer's responsibility.
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