A business of any size needs different types of insurance. The important thing normally, is to get the right type of insurance, with the right level of cover at the right price.
It is very easy to get too much insurance that isn’t really needed, or to get too little or the wrong type of insurance, and for the business to find that it is not properly covered.
Most major construction projects include a wide range of different businesses that work together, as well as individual tradesmen who may either be self-employed or subcontractors.
Coordinating the insurance needs for all of these people can be a major task in itself, and needs to be thoroughly overseen by the project management team.
A farm or ranch of any size has some of the same insurance needs as a construction project, but presents extra difficulties in that many farms are family owned and run.
This means that insurance for property and liability cover needs to be specifically tailored to cover both domestic and business uses. This is normally done under specialist farm insurance policies that cater for the lack of boundaries between the two.
Below are a number of common business insurance policies, with links through to more detailed information, all of which could be needed in any construction project, or by any farm or ranch management structure, domestic or business.
Workers Compensation Insurance
The nature of this type of insurance will vary quite considerably depending upon the geographical area or state that the business is located in, but it is likely to be mandatory under the legal framework of the state or country.
Legislation of this type may either be local or national.
Professional Liability Insurance
This is sometimes referred to as E and O insurance, or errors and admissions. It is normally a type of insurance taken out by professional contractors to cover any serious mistakes or negligence that may arise as a result of their work, that they could be deemed personally liable for.
In construction work, this is specially important for people like architects, project managers, engineers, surveyors etc.
Property Insurance
Any business will need some type of property insurance to protect itself against risks such as damage to buildings or equipment, as result of fire, theft or natural disasters, in a similar way to any domestic household needing property insurance.
Property insurance relating to farms can be particularly difficult because of the number of outbuildings that require cover, and a different type of risk that each presents.
Liability Insurance
This type of insurance can cover a multitude of sins as it were. Anyone involved in any type of construction work who could potentially be liable for damages to someone else may need this type of insurance.
Given that the number of different companies and sole traders who work on a construction project this needs to be managed carefully, as well as any potential liability to the public.
This can include employers liability insurance, professional indemnity insurance, public liability insurance and many more.
Vehicle Insurance
Most vehicles, be they cars, trucks, excavators or tractors will need specialist insurance that covers them based on the project site or the farm land where they operate, as well as vehicle coverage on any public highway or road.
Coverage will need to include loss or damage to the vehicle itself as well as any potential liability claim that might ensue from an accident of any type.
Business Interruption Insurance
A number of things can prevent work on a construction project taking place, and as the saying goes lost time is lost money.
Construction projects are notorious for over runs, and this can be exacerbated by a wide range of different risks or perils that can contribute to lost income, or contractual damages necessitated by delayed works.
Cyber Security Insurance
Technology has become a central part of everyone’s life in today’s world, and is a crucial part of both construction and agriculture.
Dependency on technology opens up businesses to the risk of cyber attacks, which can be devastating both in terms of their effect on the business, as well as the financial impact on how the business copes with it.
Scaffolders Insurance
Scaffolding is widely used in most types of construction projects, as well as in some agriculture building work as well. Often other work is dependent on scaffolding being in place and safely erected.
A scaffolding company will need some type of liability insurance regarding both of these areas.
Tools / Equipment Insurance
Any construction project is dependent upon tradesmen using their own tools and equipment on a daily basis. A lot of these tools are quite valuable and all at constant risk of being stolen or damaged. Specialist insurance is often needed to make sure replacement tools or equipment can be readily accessed in order to avoid project delays.
Product Liability Insurance
More commonly used in manufacturing businesses, this type of insurance can sometimes be used by certain specialist professionals instead of some type of professional indemnity insurance.
Structural Warranty Insurance
In construction projects, this type of insurance is designed to protect the builder or developer against what are known as latent defects. Whilst this is really important, in major infrastructure projects it can sometimes be quite difficult to determine who bears ultimate responsibility for putting right structural defects that are found once the project has been finished.
Legal Expenses Insurance
Anyone involved in a construction project is likely to be aware that they could be sued for a myriad of different reasons, or at the very least require some type of legal advice. Whilst many companies will have in-house legal counsel they might well need external or specialist legal advice at some point depending upon the nature of the project.
Pollution Liability Insurance
This is normally directed to the companies or contractor zone liability for any bodily injury or property damage caused by hazardous waste or materials that the company is responsible for dealing with during the construction of the project.
This can also be especially true for farm insurance, where often a wide range of different chemicals and hazardous materials are needed, and where there is serious potential liability for damage to occur.
Contractors All Risk Insurance
Many insurance companies will offer what is in effect an all risks insurance policy, designed to bring together many of the above types of liability and property insurance under one umbrella, thereby reducing costs and increasing liability coverage limits.
Farm Insurance
A specialised type of insurance designed for farms or ranches of different sizes. Will normally cover many of the risks as detailed above, as well as additional cover for things like livestock, goods in transit etc.
