What You Need to Know about Contract Works Insurance
Insurances involve contracts designed to protect a person or object from specific harm or damage. Those with insurance policies or covered by them are given financial protection or reimbursement by the insurance companies. This is why insurance brokers help you find the best coverage plan to protect certain assets:
Life insurance protects the client or their family by reimbursing a certain amount in the event of accidents, handicaps or death.
Property insurance covers any and all damages provided in the contract. The amount equivalent to the damage incurred is remitted to the client.
Vehicle insurance rewards clients with a repaid amount total to the harm caused to passengers and damage caused to the car or motorcycle.
But did you know there also is a type of insurance that protects construction property and personnel? That’s what Insurance brokers call a contract works policy.
What Is Contract Works Insurance?
A contract works insurance policy is a document that protects you (the contractor) and all construction assets from any harm, loss, damages or injuries incurred during a building project.
Specifically, this document protects its clients from the following:
Third-party injuries such as wounded pedestrians walking near the site
Personal effects such as clothes, gadgets and other items on one’s person
Third-party property damage such as a dented car roof due to falling debris
Internal and external theft of on-site materials
Accidental damage to on-site equipment
Natural disasters such as earthquakes, floods, man-made disasters (crime, arson, cyberterrorism, war and the like), hurricanes, tornadoes and even volcanoes
It is common for construction business owners to use contract works insurance because they directly engage with a client’s building needs. Depending on their preference, coverage can either be set to a per-project or annual basis.
Since it covers contractors, sub-contractors and all related parties to the construction project, this type of insurance protects your entire team from inside and outside financial losses.
Why Would You Need It?
Before asking insurance brokers to help you find the best plan, examine if your construction firm needs it. Here are some considerations:
Have your previous and recent projects exceeded protection limitations?
Do you store or transport construction materials?
Does your business accept renovation or other related jobs regularly?
Is your team required to work in a construction site most of the time?
Do your business operations handle construction projects?
Are you a builder or a craftsperson?
If you answered yes to some or all of these questions, your company needs contract works insurance. As a construction firm that engages in building projects regularly, it is imperative to protect your team and equipment from financial losses and additional stress during the project.
And while it entails additional costs from your end, it is worth the effort. In the event of an accident or injury, your company is prepared to meet those incidents with the help of an insurance company that will reimburse the related parties for the damage, whether now or in the possible future.
As with any insurance policy, you must iron out the details with insurance brokers so they can help you find the best coverage. We recommend evaluating your past and recent projects to better understand what exactly you need. For instance, if you are not near a fault line or volcano, getting inclusions for volcanoes or earthquakes doesn’t make sense.
Though only documents on a piece of paper, contract works insurance policies go a long way in preventing financial losses and ensuring your construction project continues with as few hassles as possible. It is an investment worth making to protect your customers, team and company’s reputation as a reliable building firm.
Need this kind of policy? Get in touch with New Wave Insurance right now! We’re a group of insurance brokers in the Gold Coast that can help you find the right provider or the best deal for your assets, business and vehicles!