Construction is a high risk industry. Personal injuries and property damage occur frequently, and these events can cost the contractor significant amounts of money. Many times such claims could be covered under a Contractor's Insurance policy or a Construction Insurance policy.
Why do Contractors need insurance?
Accidents are common with construction! A Contractor needs to consider their risks as a professional and the liability exposures they could face. If you are a contractor, you could be named in a lawsuit from a workplace injury of a tradesperson. Many contractors can be caught short by failing to evaluate their potential liability risks. A contractor may even want to consider coverage for their business personal property, equipment and/or tools.
Visit BC Liability Insurance for more information on the types of liability policies available.
Why does a building under construction need insurance?
It is important to insure against physical loss or property damage to equipment and materials during the course of construction. Even through the building may not be complete; damage to materials and cleanup costs can be significant. Construction policies can be complicated so contractors should take care to ensure that any coverage adequately covers the risks of the construction project to be undertaken.
Important considerations for contractors:
- Conduct an insurance audit with a risk manager or broker to determine potential risks
- Consult with your broker because many insurers can customize the coverage to match the needs of the project.
- Regularly review the coverage limits with your insurance broker to make sure they are adequate.
- Carefully consider the period of coverage with both the broker and your client, as the contractor’s insurance may only extend to when the contractor is on site and ceases when the client takes possession.
- Technology is changing at a rapid pace. More contractors are storing client data, designs and other important information online. Contractors should be aware of these increased risks and consider whether Cyber Insurance may be necessary.
For more information on Commercial Insurance solutions offered by Westland Insurance call 1-800-899-3093.