Sunday, July 8, 2012

Protecting Yourself During Course Of Construction

Undertaking the construction of a new home or even a home renovation can be a daunting endeavor. During the course of construction several unforeseen events can occur that can slow down construction or even halt it altogether. Some people shy away from informing their insurance companies about construction projects due to the fact that the price of their coverage is likely to go up. There are companies that specialize in this type of insurance, but many people may feel that the extra money may not be necessary. Not properly protecting a construction project, however, can lead to even higher costs in the end.

Dangers to the Project

There are several scenarios that could halt or slow construction. Occurrences such as fires, weather, vandalism, theft and injuries can be common, especially in certain areas. These events can cause a builder to incur more costs, lose materials, lose workers, and have already completed work destroyed. If a builder doesn't properly prepare for these possible costs they are likely to lose money.

Other loss can come in the form of insect damage, faulty design, mold damage, and even terrorism. These costs are more difficult to manage due to the fact that many insurance policies do not come with this type of coverage. Some companies may cover some of these scenarios for additional costs, but most of these occurrences occur due to negligence, so making sure a job is done correctly can ensure these costs won't be an issue.


Not having insurance for a course of construction job can have detrimental effects. Any unforeseen accident or loss can end up costing thousands of additional dollars to recover from. Getting insurance will cover these costs, but it does come at a price. No two insurance policies are the same so it is important to check out a few different policies to decide which one best meets the needs of a project.

Just because there are several exclusions listed on insurance policies doesn't mean a person cannot be covered from these exclusions. Most insurance companies will allow a person to add on certain exclusions by paying a higher premium. Once again these events are usually foreseen or preventable which is why the premium is higher. Even policies that cover theft usually do not pay off if the theft is committed by an employee, so it is important to trust the workers on a job.

There also aren't many construction insurance policies that automatically cover injuries of workers. This is one area where it is necessary to find some type of insurance due to the fact that a serious injury can lead to lawsuits that far exceed the original price of construction. A builder should always check with their insurance company to find out about purchasing general liability insurance. Construction has inherent dangers, so making sure a jobsite is covered from losses that could occur due to injuries is one of the most important factors when taking on a project.


Some people wouldn't automatically think of security when they consider taking on construction projects, but if they end up needing it and don't have it they will have serious regrets. Insurance companies even consider what security measures are present at a site before insuring it, so these measures can even lower premiums. The amount of security necessary is largely dependent on the value of the property at the site. Motion detecting lighting, fencing, fire extinguishers, and even fire and burglar alarms are good investments and often necessary on a jobsite. These things may end up being unnecessary and costly, but it can end up being even costlier to not have these protections.

Protecting the project and assets on a jobsite is critically important. If a person decides to undertake a construction project they need to be fully prepared for all possible outcomes and consequences. Construction jobs are not as easy as telling people to get to work, because there is hardly a project completed that doesn't run into some unanticipated downfall. Research and accountability go a long way when someone is building themselves a better future.

Leading insurance expert Carolyne Roehm has written extensively about the insurance industry. She is currently a guest blogger for numerous insurance websites. Her most recent postings can be found at

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