How Builder’s Insurance Can Protect Your Assets

construction workersConstruction projects are likely to encounter problems. Accidents happen during the building process, which could damage your valuable assets and even put a worker’s life at risk. With the simultaneous use of vehicles and equipment, workers and the materials they’re using are at higher risk of encountering trouble. You need protection to make sure that the construction process goes through smoothly.

Builder’s insurance coverage is a liability insurance policy, which covers any damage that might occur over the course of construction. It also includes coverage for materials currently in use and in stock, fixtures, and equipment. Usually, the property owners have to look and pay for this coverage, but some contractors include it in their initial contract.

Conditions That May Put Your Project at Risk

Construction projects are delicate, so builders are highly attentive during the process to complete tasks without casualties. Here are some examples of events that may threaten your project:

– Fire – Fires can break out in buildings and structures under construction because of welding tools or the malfunction of equipment and other materials used.

– Weather – Weather conditions expose your materials and ongoing projects to rain and too much sunlight. These can pose threats to the building you’re working on at present or affect the quality of materials used.

– Incomplete – Unfinished projects have less supportive structures, which may cause the building to collapse. This makes you lose a significant amount of money because you need to fix the damages and redo the construction.

What Builder’s Insurance Can Do for You

To avoid such casualties from happening, contractors turn to builder’s insurance policy for protection. Policies include coverage for natural disasters, human-related faults, and other specific scenarios. Its coverage is predetermined according to the time of policy agreement, such as three, six, or 12-month periods. Projects extend when delays happen, so it also gives consideration and lengthens the coverage only once.

Nobody can tell what will happen during a construction project. This is why it’s better to be safe than sorry. Production-related insurance is ideal support for builders who are in need of asset and workers protection.

Sources:
http://www.buildingcommission.wa.gov.au/building-approvals/building-act-2011
http://www.yourhome.gov.au/renovatorsguide/builder.html
http://tradesure.com.au/trades/builders-insurance