Construction is great but avoid trouble

Do you have a construction- or handyman service company? No matter how much you do your best, there’s always something that can go wrong during the construction process. Not only because an accident can happen during bricklaying or carpentry, but you should also consider such things as a storm, fire or theft.

These are risks that can have a big impact on your business and a Construction All Risk insurance (CAR) is a must. The beauty of a Construction All Risk insurance is that it’s very broad. As a construction company, you can counter all sorts of setbacks with it. But of course, not everything. Here are a few examples of circumstances where a Construction All Risk insurance can and can’t help:

Can: if an electrician knocks over and breaks the mirror in the bathroom.
Can’t: a lorry filled with sand collides into the neighbor’s house.
Can: a granite countertop breaks during installation.
Can’t: if lightning strikes in the house you’re renovating.

Caveat: don’t just quickly take out a Construction All Risk insurance right before a job

Especially because it’s such a broad insurance, you should really take the time to think about which items you want to make sure to hedge. It’s not handy, for instance, to quickly take out a Construction All Risk insurance right before taking on a new job. That’s asking for trouble. You really should take the time before doing so.

You can include or exclude building components on a ‘per project’ basis. For example, to keep costs down when building a house, you could leave out building the kitchen. But that’s not very smart, because especially when building a kitchen, there’s a lot that can go wrong. So, you should really think about all of that.

Another example: during construction of another floor to an existing house, the concrete story floor collapses, consequently causing damage to the existing house. If the item ‘existing property’ is not included in the insurance, then the damage to the existing house is not covered, but only the damage to the story floor (namely the work that has been done). Make sure to list all these types of things and consider them ahead of time.

Topics you should definitely take into consideration are remote locations (increased chance of theft and vandalism), insured value (is the amount correct?), piles (be cautious of damage to nearby premises), concrete calculations (chance of errors), beach front (weather conditions close to the sea), construction period (what is included and what is not?).

A question for you: how do you stay one step ahead of a calamity?

You know that a building under construction brings with it far greater risks than a building that is finished. For example, a greater risk of fire, wind and rain can take more hold of a half-open construction, there’s an increased chance of theft or vandalism, etc. The question for you is, how do you stay ahead of these types of calamities? Here are some practical tips:

  • Bring valuable equipment (such as air conditioners) to the construction site at the last moment.
  • Don’t underestimate the risk of theft by your own employees or hired personnel.
  • You can limit vandalism, such as having fires set to waste, by clearing up all your waste at the end of the day.
  • Use lockable containers.
  • Ensure solid security (fencing).

With the proper measures you’ll keep many calamities at bay. That’s always good. As a business owner you want to deal with the least possible hassle. Good luck!

Want to learn more about the Construction All Risk insurance? Let me know.

Make an appointment now

Sayonara Tiel
ENNIA Corporate Insurance Specialist