- 5 Apr 2022
- Reading time
- 4 minutes
A project will almost always consist of a definite start date and end date within which time there may be a plethora of tasks to complete. While a task is supposed to be completed within a certain budget, several things can happen that may derail the work. Therefore, the availability of insurance to minimize risk will be crucial. Each project will need specific coverage depending on the risks involved. Read on to learn about the type of insurance you can get for your project.
General Liability Insurance
Every company undertaking a huge project should have general liability insurance for protection against liabilities that may arise from the work going on. Some of the liabilities include medical expenses and subsequent injury claims that may arise from work-related activities. Your company can be sued for injuries caused by slips and falls, and this is where you can also utilize your general liability policy. If your company causes damage to the client’s property, general liability insurance will provide coverage.
Professional Liability Insurance
Damage that is caused by elements such as professional negligence is not covered by general liability insurance. This means you should get a special policy called professional liability insurance (PLI) which is also known as errors or omissions insurance. If your company is sued for allegations emanating from negligence, the policy will pay for the legal fees and compensation. Experienced brokers at apollocover.com/business-insurance/contractors-insurance/ explain that PLI covers businesses providing professional services if they experience legal issues related to their work. Issues like delays or errors may be unavoidable in a project, and the client may decide to sue.
If a client files a lawsuit against your company, professional liability will handle the legal costs on behalf of your business. You can get peace of mind when you have this type of policy since your business will be protected against a financial crisis should someone decide to sue. Additionally, the policy allows you to focus on your core work when you know that you have enough coverage.
When undertaking a big project, the contractor is obligated by the government to protect all the employees through workers’ compensation insurance. This policy is designed to protect the workers from medical expenses caused by work-related injuries or loss of wages. This policy also protects the company from lawsuits that can be triggered by job-related injuries.
All the materials and equipment transported to the construction site should be delivered in good condition. They must be insured during shipment so that the contractor can get coverage in the event of damage to or loss of equipment in transit to the site. Transportation insurance can also include marine cargo. If the materials are damaged just after delivery, the insurer and the shipper can each undertake to pay half the cost to reimburse the items.
Contents insurance is primarily designed to protect the materials owned by the contractor. It also covers equipment like drills, saws, hammers, and other tools. If any of these items get damaged or are stolen, this insurance will provide money to buy replacements, since the loss of vital tools can significantly derail progress in a project.
Commercial Auto Insurance
It is essential to have commercial auto insurance to protect the vehicles used for business purposes. Personal and company vehicles can have automobile insurance, but when you use them for other tasks, then you should obtain commercial auto policies on top of the ones you have. An insurer can refuse to pay for repairs for a vehicle damaged while doing commercial work. The vehicles you can put on commercial auto insurance include cars, tractor-trailers, and different types of trucks.
When undertaking a project, you should have a policy that covers consequential losses. These are excluded by general insurance coverage, so it is important that you get the appropriate policy. Some of the consequential losses that can be encountered include the delayed start-up of the project and business interruption. You must get a separate consequential loss plan for other aspects of business that are not covered by the insurance plans you already have. If you’re not too sure about what this entails, you should definitely do a bit of research.
You know you’re working with a reliable source when you have a site that collects information and reviews to help you draw comparisons from a variety of companies in your area and around the world. Allreviews in particular has been working towards ensuring that they keep their database updated of all the important companies that provide specific services, along with reviews so that you have access to comparisons all in one place. The key is that you’re not getting the biased opinion of employees or people that are paid to promote the said company or their services. Instead, you’re able to get constructive and informative feedback from people who are customers or who have dealt with a number of companies providing the service that you need. This way, you will be able to come up with a more accurate perception of how this organization functions while having more transparency as well. According to the reviews found on allreviews.ca, you can easily make comparisons and look up customer reviews to gain a deeper understanding, not just about consequential loss, but about insurance company services and reliability in general.
When undertaking a project, there are many risks you are likely to encounter. To mitigate their impact on your work, you should get the appropriate insurance for each aspect of the project. There are several types of policies you can consider depending on the type of project you are embarking upon. If you ever feel unsure as to the types of insurance you may need for your next project, you can always refer to this article as a guide.