Don’t underestimate the importance of insurance in the construction sector


Working in the construction sector can be extremely rewarding when you see the benefits of the hard work that you have put in. However, despite the benefits, the construction industry remains a dangerous industry to work in – owing to the heavy machinery, power tools and large vehicles that are necessary, as well as the general injury that can occur through manual labour.

This is why possessing insurance to cover your workforce, construction site and the general public is vital to the success of your firm.

According to the Health & Safety Executive (HSE), there were over 71,000 non-fatal injuries recorded in the workplace by employers across 2017 and 2018. When evaluating these statistics, it’s naïve to think that every one of these injuries was covered by valid insurance.

This article will explain the huge importance of insurance in the construction sector and how it can help both your firm and the third parties that are involved.

Public liability insurance

Public liability insurance is vital to ensuring that you’re covered in the face of third-party claims related to your construction site. These claims can be related to contractors working on your building site or coming from events or altercations involving the public while transporting goods in and out of the site, or even how your project’s infrastructure is affecting the local community.

We’ve all witnessed our fair share of nasty injuries throughout our time working in construction. It’s bad enough when they happen to our own workforce, but when an unpleasant injury happens to a member of the general public, it could pose serious risks to your business’s financial situation and the success of your project.

Public liability insurance will cover you against paying compensation for injuries and damages to third parties within your industry as well as ensure that all medical bills and transportation costs are covered without you having to pay any more than your standard insurance bill.

Other types of insurance within the construction sector

We’ve covered how PL insurance covers third parties, but what about your own workforce and your employees? Employers liability cover is a legal requirement in the UK and covers you when one of your employees falls ill or suffers an injury at work.

As an employer, you may have never experienced any long-term injuries within the construction industry and choose to ride your luck until the time comes. Statistics provided by HSE show that, each year in the UK, around 80,000 construction workers suffer from work-related ill health, with 65% of those instances occurring through musculoskeletal injuries.

Whether your employees are off work on short-term sickness or plan to take you to court over a compensation claim following a long-term injury they have sustained, employers liability insurance can cover you against costly financial battles that, otherwise, could potentially ruin your livelihood.

Another type of insurance that is vital to the construction industry is the one that covers your tools and equipment in the face of theft or damage. Without these tools, you’re unable to complete your project on budget and on time. Therefore, the reputation of your business could be lowered in the eyes of site foreman and customers.


Latest Issue

BDC 309 : Oct 2023