Insurance is protection against any unforeseen circumstances that may arise in the future. Builders are offered with different types of insurance to protect them in different occurrences that may face them in the construction process. One of the insurance covers that every builder needs is liability insurance. This insurance protects the builder, who is the insured, in respect to legal liability to third parties for property damage, and bodily injury that may happen in connection to the business. Here is an overview of liability insurance and why you need it.
Liability for Employees
Builders need liability insurance because they have employees who are a risk to them. The workers need to be covered so that in case of injuries or death as a result of the construction work they can get compensated. This is covered under builder-employer liability insurance. The employees will not pursue you for compensation in case of injuries, instead they will launch a claim with the insurance company.
Public Liability
There are different parties who are considered externalities in any construction work. We will have people nearby, animals, and probably other buildings. All these are a risky to your construction work. Therefore, you need public liability insurance so that anything that may happen to them as a result of negligence in your work may be catered for by insurance.
Builders need liability insurance so that they can have peace of mind. There are many risks posed to third parties more so the employees a builder contracts. Therefore, liability insurance reduces the worry and risk of your business as a builder.
Legal Requirements
In many companies that are hiring builders, it is a requirement for them to have liability insurance. They understand what liability insurance can do. Therefore, if you need to develop competitive edges against other builders you will need to get liability insurance.
Many builders are not big enough to compensate third parties in case of damage to property or injuries. If they do the compensation they may incur losses that they will never recover. When you are the one to indemnify for damages to third party property, you will have to incur other expenses hiring lawyers, witness fees, and court expenses. Besides, this may waste your time that you could have invested in other construction contracts.
If you are a builder, liability insurance is a mandatory aspect in your business. You will need to engage experts in the field so that you can get the best cover. Besides, you will need to consider the rates offered by different insurance companies.