Which Type of Insurance Helps the Construction Industry

Construction industry gets benefits from construction insurance. Construction insurance is also called as builder's risk insurance. Construction industry faces huge risk at sites. This insurance covers all the possible losses, which arise from the construction associated works. Construction insurance provides safety to the workers, materials and tools of construction site, and benefits to the contractors, public living near to the site.

Construction insurance provides benefits in these ways,

1. Secures the Property
Construction insurance provides the insured, the tools and materials of a construction site against earthquake, theft, and fire damages.

For example: You are running a construction company and are doing a big construction for that. You bought huge amount of cement, sand, iron and machines. And suddenly your materials at the construction site are stolen. In such cases, if you are holding a construction insurance, then the firm bears the loss amount . If suddenly a heavy rain occurred due to which entire cement is damaged, then also the firm pays the amount to buy the cement.

2. Provides the Security for the Workers Life Construction insurance provides the medical benefits for the workers, who are working at sites. This insurance provides the operation and medical expenses for the injured worker, if the person gets injured while working.

If your worker suffers from some injury or death while working, then the construction insurance covers all the medical and hospital expenses. It also provides the death benefits, if the worker dies while working.

Construction insurance provides the disability benefits also if the worker is disabled due to the work accident. Like if your worker is disabled temporarily due to the cause of work accident, then the insurance firm pays some percentage of the wage to the employee for the period he did not work.

3. Provides General Liability Insurance
Construction insurance gives benefits for the general public, if they get injured due to the employee or tools of construction. For example, if any one person from the general public gets injured due to the construction site work, like while dropping the waste material from the top of the building or due to the breakage of walls whilehttp://www.blogger.com/img/blank.gif constructing, etc. In such cases, the person takes legal action for the injury on the construction company. Therefore, in those cases the insurance firm pays the medical and hospital charges to recover the injured person's health to normal position. In case of death of person occurred at the site, the insurance company gives death benefits to the dependents of the person.

As construction involves high amount of money and also life risky tasks, it is mandatory to have a construction insurance.