Unlike every other job, the construction industry has it quite different as the site is often busy and crowded with activities of workers, and there is also the presence of large machinery to get the work done.
Every now and then, more and more machineries are added to the company to meet up with the advancement in technology and while doing this, the possibility of risk and injuries are increased.
To have insurance means to have a company or state agree to provide a guarantee of compensation for an agreed loss or damage. On Collected.Reviews, there is more than enough information on insurance, you should go through to learn more.
Moreover, risks cannot be avoided but if such should occur, with the right insurance it can be covered easily without having to spend a large amount. For those who are curious about which insurance company to go with, there are reviews of insurance companies online you might want to check out to discover which company fits your needs.
Depending on the type of construction company, there are numerous insurance policies you may or may not have heard about which are must haves, and they include:
1. Worker’s Compensation Insurance
This insurance protects employees from lost wages and medical expenses that occurred as a result of job-related injuries. Also, a construction company with this insurance is safeguarded from lawsuits related to those injuries. The worker’s compensation insurance is important for developers and contractors that plan to employ workers that stand a chance of injuring on the job. This insurance in some states is required by the law.
2. Contractor License Bonds
This is a legally binding contract that ensures that the contractor will pay for any material and labor required to get the job done. Usually, the cost of the bond is dependent on the contractor’s historical track record of income and credit score. This is quite different from an insurance policy because the contractor purchases the bond and the bond is designed to protect anyone the contractor does business with. Though, some insurance companies offer bonds.
3. Inland Marine Insurance
Transporting goods involves shipments. And the construction company is always involved with transporting equipment, tools, and supplies to work sites across the ocean. This insurance covers the type of property including the property in transit, mobile equipment, property in custody, computer equipment, digital information, and property used in the various locations. The inland marine insurance also covers the builder’s risk insurance for the buildings that are under construction. The builder’s risk can be done on a per-project or a blanket master program.
4. Commercial Auto Insurance
It is the insurance provided to vehicles used by the company. There are several coverage options in the auto insurance policies but the standard includes liability coverage, physical damage coverage, medical payment coverage, uninsured motorist coverage, and the commercial vehicles that can be insured range from cars to trucks, largely because of vehicles like tractor-trailers and others.
Ultimately, the construction company is faced with different risks and requires a whole lot of insurance to protect the workers and contractors. The insurance of construction companies varies with what they deal with.