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Why Do You Need Insurance for Commercial Construction

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Commercial construction projects are large, complex and involve significant risk. Undertaking a commercial construction project requires deep expertise, methodical planning, and robust insurance coverage. So why do you need insurance for commercial construction? Below are some of the reasons why you should consider getting insurance for your commercial construction projects.

Reduce your exposure to losses

Commercial construction projects are significant undertakings that often run into many millions of dollars in project costs. If your commercial construction project was to experience a loss event, the impact could be very significant to the company running the project.

Insurance may cover you against expensive lawsuits.

If a loss occurs and you end up being sued or liable for damages, then having appropriate insurance can help to reduce your exposure and to cover the costs associated with costly damages and lawsuits.

Insurance might be required for your project to proceed

If you want to undertake a commercial construction project, then you will be required under law, to have certain insurances in place. These insurances include but are not limited to, workers' compensation for any employees you have working in your business. Also, contract works or construction works insurance, which may include coverage for material damage and legal liability for builders, trades, sub-contractors and others for accidental physical loss and for damage to the construction project during the period of construction. In addition, you may require specific professional indemnity, public liability, and directors & officers insurance. It is best to speak with an insurance broker to better understand your insurance requirements.

Commercial construction risks that insurance can reduce

Commercial construction projects come with significant risks. Some of the possible risks that may happen during a commercial construction project among the contractors, subcontractors, and other involved parties whilst completing a project could include:

Extreme weather conditions that might destroy building structures, delay a project timeline and damage building materials.
Theft of construction materials.
Financial losses from property damages
Financial losses from liability claims
Employees suffering an injury or death during construction.
Faulty workmanship that could lead to negligence and malpractice

Management Liability Insurance

Management Liability insurance is designed to provide protection to both the business and its directors or officers for claims of wrongful acts in the management of the business.

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Business Insurance

A business insurance pack can provide cover for your business premises and contents, against loss, damage, theft or financial loss from an insured interruption to the business.

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Business Package

Purchase up to six products under one Business Insurance Package.

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Extreme weather conditions that might destroy building structures, delay a project timeline and damage building materials.
Theft of construction materials.
Financial losses from property damages
Financial losses from liability claims
Employees suffering an injury or death during construction.
Faulty workmanship that could lead to negligence and malpractice

These potential risks can be daunting, however, it is worth considering that with every problem, there can be a solution. With the right insurance coverage, these risks may be addressed and mitigated. Consulting an experienced insurance broker can help to reduce your exposure to potential risks.

How can commercial construction software assist your insurance?

One reason that the technology may have helped many businesses in project management is because of its ability to make things more efficient from standard practices. It’s not that the traditional paperwork is unfeasible, but AI-powered tools have added to the functions of day-to-day businesses. Below are some of the reasons why commercial construction software could help you deal with your commercial construction and insurance data:

It can help you in decision-making.

Now that your data is visible on one platform, it may be easier for you to find and manage your exposure to different risks and quantify potential losses for your contractors and construction equipment.

It supports you with proper documentation.

Doing business comes with a lot of paperwork and administration. With commercial construction software, you can rely on just one tool to track all the information that is associated with your project.

It could protect you from possible data losses.

Adding, updating and managing your information may also be a tedious process. However, it can be significantly harder to recover data when lost due to fire, cybercrime, theft, and other unpredictable circumstances that might expose your business and commercial construction projects without proper prevention. Through using commercial construction software, you can work with confidence knowing that your data may be recovered anytime.

Silverback Insurance is passionate in helping builders and specialises in finding you the right insurance solution, tailored to your business needs. We work in collaboration with innovative technology such as Procore that looks to disrupt the industry for the good of all.

General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

All information above has been provided by the author.

Silverback Insurance Pty Ltd, ABN 74 643 561 746, AFSL CBN AFSL 233750