So many things can go wrong on a construction site. Accidents can occur as workers and other stakeholders go about their business. The only thing that's worse than accidents and injuries is working on a site without liability insurance. That's because you will be liable for any property damages, accidents, and personal injuries suffered on your construction site. If you have not hedged yourself against these risks, you can incur thousands of dollars in damages. That's why it is important to obtain public liability insurance before commencing work on the site.
This piece will address some of the key issues that you should have in mind as you seek construction liability insurance.
1.The extent of the cover
Liability insurance policies are tailored to meet the specific needs of various businesses. Before taking out one for a construction site, determine the extent of the coverage you need. That's because if an uninsured risk occurs on the site, you will be liable for any medical expenses, property damage, and other damages that will be prescribed by the court. Assess your scope of activities and cover any risks that may result from them. Some of the common risks include the following:
- •Injury from falling structures such as scaffolds.
- •Injury from falling loads.
- •Accidents when operating heavy equipment such as earthmoving equipment, cranes, concrete trucks, and others.
- •Property damage from falling structures or loads.
- •Injuries from electrical hazards
Tailor your policy to cover these and other risks that may occur on your site.
2.Parties covered by the policy
Just because liability insurance covers the public doesn't mean that any person around your site is liable to claim for damages after an accident or injury. Policies clearly state the parties that are covered. Therefore, make sure that all the stakeholders on the site and who will be working on the structures are covered by the policy. These include the contractors, professional consultants such as engineers, designers, and architects, financiers, freeholders, and tradesmen.
However, note that some professionals such as engineers take insurance covers for themselves before engaging in public works. It may be a good idea to consult with them before including them, as this may help lower your insurance cost.
3.Level of coverage
Finally, determine the amount of cover that you need for your construction site. Your insurer will only pay out to the limit set by the policy for individual or aggregated claims. The viable level of coverage should depend on the type and level of risks that are inherent on the site. When determining the level of cover, don't adhere to the amount specified in the contract, as this is usually the minimum cover.
Buying construction liability insurance is not an easy task. Contact a local company like National Corporate Broking Pty Ltd today so that they can walk you through this process.