Many contractors or workers avoid insurance, thinking of saving money. Of course, it is possible to save money by cutting out insurance, but this “saving” will quickly become an enormous expense if any accident or mishap occurs. In the worst case, you can end up going bankrupt.
On the other hand, some responsible craftsmen want to make sure that they have ensured everything at the construction site. If you belong to this category, then this post is for you.
More than often, you forget a few things while considering what to ensure at the construction site. For your help, below, you get three questions that are worth asking yourself when insuring your work site.
#1 Have You Insured The People Working At The Construction Site?
First and foremost, have you insured all your construction site employees? I guess you got it. After all, it is required by law. But it cannot be overemphasized how important it is for all employees to feel confident that they are being taken care of in the event of an accident or getting sick because of the job they are doing.
And there are good reasons why occupational injury insurance is required by law. A survey conducted shows that almost 76,000 people nationwide are injured on the job within a year, and if workers are young, you are at increased risk.
But keep in mind that occupational injury insurance does not cover the journey between home and work unless you have extended the coverage to leisure or you have a company that has this extension included in the insurance.
#2 Have You Insured Your Tool And Equipment?
Burglary and theft at the construction site is a well-known problem. Safety is not optimal, and there is generally little security at construction sites after the end of working hours. Depending on how big your job is, you can risk significant financial losses if you do not opt for plant and equipment insurance.
Don’t think it doesn’t apply to you. The building industry’s National Association has prepared a report on “Theft from the construction site,” which shows that the chances of theft at the construction site are high and that the consequences can potentially be substantial. As much as 43 percent of the companies that participated in the surveys had experienced theft from the construction site during the past year. These thefts were mostly outside working hours, and in most cases, tools were stolen.
Moreover, it’s not just about theft. Mechanical breakdown, fault in the machinery, and equipment breakdowns – such damages can be cover under plant and equipment insurance. Many reputed firms even offer comprehensive coverage plans. If you live in Australia, Truck Insurance HQ can help you to get a tailored insurance package at 30% less cost than the market price. This way, you can kill two birds with one stone – you get your machinery insured and also save a few bucks.
#3 Have You Insured Your Contract?
As a craftsman, you are responsible for the insurance until the building is completed. Unless otherwise agreed, it means that you, as a contractor, must ensure everything that is done by the contract work, materials that the developer has paid in advance, and materials that are handed over from the builder to you.
If you are a subcontractor, you must remember that you are not covered by the main contractor’s insurance – and vice versa. For main contractors – if one of your subcontractors lacks insurance, you may end up with the claim that should have been addressed to them.
Of the three insurance mentioned above, only your employees are required by law to insure through occupational injury insurance. The other two are voluntary. But don’t take any shortcuts, it rarely pays off in the long run.