Property construction can be a very dynamic environment. It is often difficult for the main contractor to anticipate obstacles that may develop as the project unfolds, or to anticipate any losses that they may incur due to circumstances beyond their control. Consequently, it can be quite difficult for them to accurately estimate both the cost and the length of the building work, but as they need to, then they will often err on the side of caution. It's not surprising, therefore, that construction company bosses may endure many sleepless nights as they worry if they're covered themselves adequately. This is why they need to consider buying a specific protection product known as construction insurance. How can this help in many ways?
Theft & Vandalism
A business that is under construction is very difficult to secure. While the contractor will undoubtedly try their best to prohibit access out of hours, the site will not be the fortress that it will undoubtedly be when it's finished. It's not surprising, therefore, that theft rates are so high within the industry, especially as the equipment that is left overnight is typically very expensive and lucrative on the black market.
Not only that, but the contractor also needs to worry about vandalism, which could cause damage not only to the equipment being used, but to the actual building itself. In this case, the owner of the building may turn to the contractor for compensation.
Fire
Perhaps the worst-case scenario of all is fire. Suppression systems may well be switched off or partially immobilised during construction, simply due to practicality. If the building becomes engulfed as a result of the renovation work, then losses could be catastrophic.
Additional Benefits
It's worth looking at construction insurance very carefully. Some of these policies can not only include you as the primary risk taker, but also your subcontractors and the owners of the property. When you have such a policy in place it may give you a competitive advantage against your peers, with extra credibility when you pitch for new work. Remember, it is possible that a lender may ask the project owner for proof of construction insurance, so if you have it on hand, you're ahead of the game.
Why You Should Get Information
Talk with a insurance company such as National Corporate Broking Pty Ltd to tailor a policy to cover your specific risks. In many cases, these insurance products can help determine any responsibility quickly and head off any protracted disputes about compensation. They may also help you to get some much-needed sleep at night.
