Data on Construction Industry Risks: The Importance of Insurance

Published September 3, 2019

Working in the construction industry can be a very risky business. Not including what could actually happen on a building site, there are many things which could affect your business negatively. Let’s take a look at what the data says about the risk and what you can do to help protect yourself.

Risk 1 – Safety Hazards

Whether you are a plumber or an electrician, you need to make sure that you are always keeping yourself safe whenever you step onto a building site. Concentrate on what is around you at all times and make sure that you are investing in proper safety gear to allow you to carry out your jobs.

It is estimated that approximately 21% of workplace deaths can be attributed to the construction industry. The correct use of safety equipment and protocols can stop your team from becoming part of that statistic.

Risk 2 – Damage or Theft of Equipment

As a construction business owner, your tools are going to be some of the most expensive parts of your business. It can cost anywhere upwards of $500 to outfit yourself properly; depending on which brand of tool you want to use and which ones you already have. The right contractor insurance should have some form of tool insurance to help you recover tools in the unfortunate event that they are lost or stolen.

Risk 3 – Poor Contracts

It does not matter how simple a repair job might be, you need to make sure that you are giving a contract to everyone who agrees to hire you for a job. Many people refuse to pay their contractors either because they feel like a satisfactory job wasn’t done, or simply because they don’t want to pay. Don’t be caught out; a contract and the right insurance means that you can protect your business while seeking out legal resolution for the missing payment.

Risk 4 – Issues with Suppliers

You can be the most on-time contractor in the world but none of the matters if you are unable to get the supplies you need to complete the job. You may want to support another local supplier but you can’t help it if they have an accident or some other incident. If they need to close their doors for a period of time, you are still going to have orders to fulfil. Make sure you always have a network of suppliers on hand so you know what you are always going to have someone to turn to when a job needs to be finished.

These are all risks which can be lessened with the right type of insurance. You need to make sure that you are always protecting your business. It is your livelihood and you need to make sure you have taken all the adequate steps you need to ensure that it is indeed protected. From the right PPE gear to insurance for your tools and your business as a whole, there are plenty of ways you can try to mitigate risk. Look into your options today.