How Construction All Risk Insurance Policy Can Help the Survival and Growth of Construction Business?
A few days ago, three workers lost their lives when a wooden shuttering support which they installed in an under construction housing project in Pune fell?
Sadly, this is not the single case of death or accident at the construction site. In fact, India has one of the highest accident rates in the construction business.
A construction site is always susceptible to all kinds of accidents and losses, which can mount from legal claims, damage, theft, pilferage and more. Unfortunately, it is that one sector which is prone to various accidents due to the high-risk nature of the job. Further, working with powerful machines can make this sector more dangerous than other businesses.
As a contractor, it is your prime responsibility to ensure the complete safety at the construction site and ensure the deadlines are met. However, unforeseen events can arise anytime to disturb your business, and as the owner, you would be held responsible for compensating the injured party. In most of the cases, the compensation amount can be hefty enough to put pressure on your finances.
Here, construction all risk insurance policy can act as a savior for a builder or contractor. The policy plays a crucial role by covering various risks which may arise during construction. It includes loss or damage to machinery & tools, property, plant, works brought to the site, temporary on-the site work along with third-party liability which may be related to the work going on the construction site.
Here are some of the benefits which you can get with a construction all risk insurance policy -
1. Offers wide coverage - If you have a construction all risk insurance policy, the insurer will cover physical loss, destruction or damage of the property due to various perils like fire, collapse, earthquake, human error, water damage, etc.
2. Covers extensive business activities - A construction all risk insurance policy offers wide coverage as it covers various civil engineering projects like a water tank, flyovers, sewage water treatment plants, etc. It means, if you are engaged in any construction or civil business activity, you can buy construction all risk insurance plan and get coverage against various perils.
3. Covers third-party liability - As a contractor, it is your responsibility to ensure the complete safety at the site, however, irrespective of safety measures deployed at a construction site, many times accidents happen. The situation may turn worse if a bodily injury or property damage is suffered by a third-party. As the owner, you would have to compensate the injured party. Here, construction all risk insurance policy can help you by covering the legal liability which may fall on you as a result of bodily injury or property damage suffered by a third-party. The insurer will pay compensation on your behalf and thus, save you from the financial loss.
4. Covers contract work - Unless specifically excluded, construction all risk insurance policy also covers accidental physical loss or damage to contract work while executing the civil engineering project.
5. Pays cost of debris removal - After a loss occurred at the construction site, as the owner, you would have to bear the cost to remove the debris on the site, which can go in lakhs. Here also construction all risk insurance can help you. By paying an additional premium, you can get an extra cover for removal of debris, which will cover the expenses incurred by the policyholder on debris removal.
Undeniably, construction plays an important role towards any country’s infrastructure and industrial development. However, there are various risks which are also involved in any construction project. As a developer or building contractor, you would require taking steps to safeguard your capital investments against various losses or damages to the construction work or materials purchased for the project. And, construction all risk insurance can play an effective role in this by offering you coverage and protecting your construction business from the financial loss.
Overall, construction all risk insurance policy gives you peace of mind as you know, help would always be there in case of any loss or damage. In this way, you can focus on your business activities without worrying about unfortunate events which can arise to disrupt the growth of your construction business.