Australia’s Construction Industry: Under Worked, Under Insured
In our increasingly litigious society, even a seemingly insignificant mistake or accident could bring about large lawsuits.
This is the nightmare of many companies; one that could soon become a reality.
Due to the increased cost of construction exacerbated by soft economic conditions, many companies are taking the risk of being underinsured or not insured at all, thus risking heavy payouts from their own pockets in the event of a claim.
While failing to get adequate insurance can be seen as a cost-cutting measure up front, the long-term pitfalls could be crippling.
Adam Richardson of Honan Insurance Group notes that, “it is imperative for builders to get their contracts, exposures and liabilities right. If not, companies can be subject to average clauses where underinsuring a contract can not only be breaching a contract but having to dig their hand in their own pocket to pay part of the loss.”
This is where taking on the services of an insurance broker can make the difference between a business-ending claim and a claim that is covered by the right insurance. For example, Commercial General Liability insurance is a critical cover for construction companies as it protects a company’s assets if the company is sued for causing damage or personal injury....