Mandatory insurance for construction companies: what are they and what do they contribute to your company.
The liability insurance for construction companies is required by law. With this insurance cover possible claims by civil proceedings that may be taken for the development of business activity.
In the case of construction companies, in addition to Civil Liability insurance, other mandatory insurance must be contracted to avoid possible administrative penalties. We list them below:
- Accident insurance agreement: this insurance must be contracted in the case of having contracted employees and as its name indicates, it is to cover the consequences of possible work accidents.
- Ten-year insurance: this is a specific insurance for the construction sector and any construction company has to contract it by law. This insurance covers the guarantee for 10 years of possible damages, defects or construction defects for home buyers of new construction.
- Vehicle insurance: in the event that the construction company has a vehicle, it must have its corresponding insurance. This type of insurance is for both passenger cars and industrial vehicles.
In addition to these mandatory insurances there are others that are convenient to hire. As for example, having an Industrial Multi-Risk Insurance, Construction All Risks, Machinery Breakdown, etc. This type of insurance covers the construction company for possible damages that may originate in the premises or office, and even possible damages in adjacent premises or buildings.
As we have already mentioned before, it is mandatory to have civil liability insurance, but there are different types and each one covers different contingencies:
- Employers’ liability.
- Products Liability.
- Exploitation Civil Liability.
Regarding the insurance that is recommended, hiring one insurance or another will depend on the risks to which your construction company is exposed.
From Quality Secure we help you analyze the contingencies of your company to determine which insurance is the most convenient for the development of your activity.
Posted by: Abdul Rimaaz