Key Risks and the Importance of Insurance for the Building and Construction Industry
Construction projects often involve a variety of stakeholders and are typically carried out on challenging sites. Businesses in the construction industry must navigate a range of risks, including frequent changes to project scope or orders, poorly defined contracts, and complex project management challenges. Additional risks include shortages of labor and materials, as well as the theft of tools and materials.
The involvement of subcontractors and suppliers can also add stress to construction firms, as can the increasing frequency of extreme weather events. Furthermore, cybercrime is becoming a growing concern, as construction businesses frequently use unsecured connections from mobile workplaces and share sensitive files and data with external parties.
Who Should Consider Insurance?
Whether you’re an owner-builder, contractor, or part of a large construction company, it’s essential to have a variety of insurance policies in place to protect your workers, buildings, and equipment.
What insurance should you take out – and what can it cover?
Insurance can protect you and your employees onsite, on the way to work and in your office. Here’s an overview of the key types of insurance every construction business should consider:
Contract works
Protects any buildings under construction and construction equipment. This cover may include protection against:
- natural disasters like fire, earthquake, storm, flood, wind and water damage
- damage to property caused by defects, theft and malicious damage or vandalism or smashed glass
- third-party personal injury and property damage.
Business pack
Safeguards your business premises against:
- equipment or machinery breakdown
- employee dishonesty
- property or glass damage
- legal issues, with public and products liability
- tax audit
- theft, and theft or loss of money.
Cyber
Safeguards you and your business against expenses and legal costs if your website or other systems are hacked and your system cannot be used or customers’ details are stolen
Motor Insurance
Takes care of your valuable business vehicles with cover to:
- help if you or your staff damage another person’s vehicle
- repair your vehicle after an accident or replace it if it’s written off
- replace a lost or stolen vehicle
- safeguard you against legal liability.
Professional indemnity
Protects you against legal action from a client for breach of professional duty. This type of insurance is often required by building contracts.
Workers Compensation
Covers the cost of your employees’ wages, rehabilitation and medication if they become injured or sick through their work.
In the construction industry, risks are varied and unpredictable. Having the right insurance is essential to protect your workers, assets, and business operations. Whether you’re managing a small team or large projects, comprehensive coverage helps safeguard against these risks, ensuring smoother operations and financial stability as you focus on completing your projects successfully.
For more information on the insurance services that Highview can assist with, get in touch with Cameron Stewart. Email: cameron.stewart@highview.com.au