The field of construction is loaded with potential hazards. Erecting buildings, constructing bridges and performing roadwork is all dangerous work. The nation of Canada has hundreds of construction projects that take place every day. Thousands of workers and pedestrians are always in danger from these projects. This makes it necessary for a construction company to have insurance protection.
When it comes to insuring a construction company and the work they perform, then professional liability coverage is a necessary part of this business. This type of coverage protects companies from negligence claims.
If a company fails to perform their job, causes another entity to lose income or does not reveal something important about the work they do; then they can be held responsible for these types of offenses. In short, this type of coverage relates to the services and products that a construction company provides. If someone gets hurt due to negligence by a construction company, then professional liability coverage should cover the cost of their injuries and loss of income.
By law, professional liability coverage construction is mandatory for any business that provides construction services. This type of insurance service will also help to protect construction outfits y providing money for defense cost in court and it will also help to cover a company when a claim is groundless.
This type of coverage only protects a company during a specified policy period. This type of coverage does not protect a company before a claim has been made. So, if someone filed a claim against a construction company before the company has insurance; then their coverage would not be valid to protect them from the previous claim.
Keep in mind that some professional liability coverage plans are retroactive. They will provide this type of coverage to construction companies that might be in need of this type of service. However, this is the exception and not the rule. Construction companies should also remember that a cyber or computer related claim that is made against their business might not be covered under this type of policy.
Ultimately, construction companies must have this type of policy in place if they want to do business. The cost and fees associated with valid claims where a company is at fault can be astronomical. In many instances, it can even cause a construction company to fail.
Construction companies by their very nature must have a wide variety of insurance coverages in place. If not, they will eventually have to pay out more money than they could possibly afford. Professional liability coverage is not an option for construction companies. This type of insurance policy is a necessary means for them to do business.