Risk management and insurance is an important discipline in today's business environment. Even construction companies have realized the growing need and demand for insuring their business areas such as that for workers compensation, builders’ risk, and commercial auto and so on. It actually provides coverage for loss exposures that cannot be predicted or analyzed before hand at the location.
The staff should be well trained in expected risky events such as that of an Earthquake, Flood, Electronic Data Processing, Direct and Contingent Business Interruption, Boiler and Machinery, and Transit coverage. For small as well as large fleets insurance can be taken up as a precautionary measure as it serves with solid protection for the most valuable assets. The confusion can be alleviated that comes with coverage selection and help the construction company in developing a loss control program designed to suit the auto needs of the business.
“A farm owner’s insurance policy has been held to cover a truck registered as a farm vehicle under V&T Law sec. 401 which was used exclusively for farm operations” (Nationwide Mutual Insurance Co. v. Erie and Niagara Insurance Co).
Employee Dishonesty, Forgery or Alteration, Theft, Disappearance and Destruction are also risk factors that must be determined by firms for the future. To protect the firm from such risks, again insurance is considered as the best policy to be taken up. The business must be protected from multi-million dollar liability lawsuits. Thus an Umbrella Liability policy is the solution, as it helps ensure there are no gaps in coverage and extends your limit of liability. Basically Coverage is provided for materials, supplies, machinery, equipment, fixtures while at the project site. This could be for 1 million and even more than this. It may actually include customers such as commercial builders, general contractors and the owner control trade.................
