If you have worked on or operated a contracting site for any length of time, you know that they are the common site for injuries and broken equipment. If you are a company or a general contractor who wishes to insulate yourself against all possible legal liabilities, there are a number of insurance forms which will be of interest you. Perhaps unknown to you because of its novelty, Contractors All Risks insurance can cover the cost of equipment, both owned and rented, as well as any injuries that result during the unfortunate occasion. “All Risks” means that you can have peace of mind because you know that, even when the most unexpected event occurs, you and your workers will still be covered. Here’s how it works.
Contractors All Risks Insurance
Contractors all risks insurance has three main focuses which we will discuss below. It is meant to be a policy which covers your liability in a great many scenarios, most of which involve damage to equipment and buildings, as well as associated injuries.
- Contract Works – Any permanent works that exist to help fulfill a contract, as well as temporary works and free issue materials that pertain to the permanent work – all of this is covered under this portion of the policy. This umbrella coverage provision covers a great deal of real-world material and events. Permanent works represent an investment both by the contractor and by the person paying the contractor, so this insurance helps make sure the completed works are as required at the time of the contract’s completion.
- Owned Plant and Machinery – If you are a contractor, you have invested many thousands in pieces of equipment and machinery that help you do your job. You may also have a plant or other facility where you do important work to complete contracts. All of this is covered under this portion of the policy, giving you peace of mind knowing that if anything happens to your equipment, facilities, or to the people operating them, you’ll have liability coverage to handle all events. This also covers the property and effects of your employees, which may be lost or damaged or misused while on-site, even though you don’t own them and are not directly responsible for their use.
- Hired Plant and Buildings – As a contractor, you will from time to time have to rent a building, plant, or other structure necessary for the completion of the contract. Often these buildings will cost much more than you would be able to buy or repair, thus necessitating this kind of coverage. Even if the worst disaster should accidentally befall one of these structures, you will be more than covered.
There are many hazards associated with being a contractor – physical, legal, and financial. If you are smart, you’ll prepare yourself to be insulated against liability in all of the likely and unlikely potential disasters which are associated with your business. Contractors all risks insurance may not be the most familiar policy type on the market, but it’s one you should be aware of because it’s incredibly useful.
Article Submitted by Community Writer.