Whenever a building is constructed by the builders and the contractors, a lot of risks are associated with the construction. In order to safeguard themselves from the risks, the builders and the contractors will follow some rules and standards. These standards are used for avoiding workplace accidents, injuries and also the damages. Sometimes accidents will occur even if enough precautions are taken. Most commonly, the builders will purchase builder’s liability insurance. This builders insurance will cover all the insurances like builder’s employers liability insurance, builder’s, builder’s all risk insurance, builder’s personal accident insurance, machinery insurance.
The cost of this insurance depends on the number of the employees, claims history, turn over etc. The types of insurance which are used are:
Builder’s Public Liability Insurance: This will cover if the insurer is sued by the claims of the third party. Examples where this insurance will cover are: If the builder is constructing a wall, unfortunately, the wall collapses and a passerby got affected with injuries, he will sue you for the injuries; if your staff unknowingly throws an equipment down stairs, then if it hits the passerby then he may claim on you. In both the cases, the builders public liability insurance is used.
Builder’s Employers Liability Insurance: This will cover the injuries of the employers during the work. Employer will claim for the loss then in those case this insurance will cover. The examples of this type of losses are: If an employee falls from a building, losses his leg then he might claim you for the compensation, in that cases this insurance will be used.
Builders All Risk Insurance: It is also known as the ‘Contractors All Risk Insurance’. It is required by the builders or the contractors. It covers the property for which he is working. This includes all the sections of the contracts. It does not cover the existing property which is already constructed. Suppose, if the builder is building the house for the purpose of sale and spent a lot of money on that house, the property is being fired and destroyed then this insurance will cover those cases.
Personal Accident Insurance: This will cover your own personal accidents. It is also called as the ‘Income Protection Insurance’. If the builder is met with an accident then in those cases, the insurance will provide income protection. It will cover him/her during the entire 24 hours regardless of the work time. It will provide an income support until, he recovers entirely.
Machinery Insurance: This insurance will cover the damages of the machinery. If there is any loss of the equipment which is used for the construction purpose, then the insurance will provide protection.
These are the different types of insurances which are needed by the builder to safeguard himself, property and others.