Why Is Insurance Required For Construction Sites
Construction sites are prone to accidents. With all the heavy machinery, fast-paced work environment, and health and safety hazards spread all across the site, it is important to manage risks, ensure compliance with safety standards, and cover your end in case of liability.
Here are a few things that can go wrong on a construction site which make insurance a necessity:
Construction Design And Defects
Construction sites can be dangerous because of the open layout and densely packed equipment, material and workers. They do not have a stable or permanent structure to mount cameras on, are always shifting and moving things around, and do not have stable power connections which make them a challenge to secure, leaving them vulnerable to accidents and theft.
Equipment Theft And Damage
Whether through the course of natural progression of work, or by thieves or vandals, construction equipment can get damaged or stolen. The extraordinarily high cost of construction material makes it lucrative for thieves because they fetch a high price when sold. Moreover, multiple access points and lack of proper security make it an ideal target.
Workers And Third-Party Injuries
Construction sites are dangerous because of the nature of the work that takes place. Working at heights, fast moving objects, under extreme weather conditions and dust is a tough ask and attention is bound to divert, with potential accidents waiting just around the corner. In addition to this, working with electricity and fire hazards necessitate stronger security measures.
Since construction sites are always changing as new structures are erected, they are a dynamic work environment. With so much going on with electricity and heavy machinery, there is always a risk of fire. Fire damages are common on construction sites. In addition to this, weather conditions can also cause problems for the crew as well as the site manager.
It is because of these hazards and potential fault-points that insurance is required. It lowers the liability on the construction site owner, and helps ensure health and safety standards on site. However, for an insurance company to insure such a hazardous site, they require certain measures to be put in place so as to safeguard their interest, as well as make the site less accident prone.