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Construction Industry

The construction industry in Canada has had an immense impact on the growth and development of the country. Construction Canada offers jobs to people, which provides sources of income and business facilities to the country.

For instance, the 2021-2030 Construction and Maintenance report by BuildForce Canada predicts that the construction industry will increase by over 64,900 construction workers over the next ten years.Therefore, it is not overrated to say that the construction industry has and will continue to positively impact the country's economy. However, not everything is as simple as it seems in the construction industry. Construction is also quite risky, meaning that workers could easily be subjected to severe injuries while at work. Such unique risks are why construction businesses should ensure they are covered and protected by insurance companies to evade any cases that would lead to their demise.

Construction & Insurance

Dangers of Construction

The construction industry is considered dangerous because of a variety of reasons. For instance, the mere fact that it involves working with heavy machinery and often at great heights. When constructing large buildings, construction workers risk their lives to carry out their tasks in sky-high projects while using machinery that heavily exceeds them in size and weight. Other risky duties may include carrying heavy materials such as bricks and cement, which increase the chances of injuries at work. 

Moreover, considering how workers work with large, heavy and more dangerous equipment. There is more possibility of accidents where they could be stuck between machinery, get hit by falling objects, or even get to suffer musculoskeletal disorders in the long term. In addition, there are health risks associated with construction as a result of inhaling material such as asbestos, wood, drywall and gypsum dust. Inhaling these materials might pose a threat to the lungs and cause other significant respiratory problems. 

Workers Compensation 

If you have a construction business with official workers (not including subcontractors), you will also need workers' compensation. Workers' compensation offers benefits to employees who get work-related injuries or diseases. Such benefits include rehabilitation, disability, and death benefits. It is also quite productive because it could cover the lost wages and medical expenses if an employee becomes sick or injured while at work. For example, one of your construction workers will be covered if he/she gets injured while using heavy construction machinery at the worksite. A business that lacks this coverage is at risk of being sued by employees that succumb to work-related injuries. The company might also experience losses because of expenses that were not previously considered. It should, however, be noted that the cover is not meant to protect any subcontractor.  As the main contractor, you should ensure that any subcontractor you hire to do a specific job possess his/her liability, property coverage, and some protection for bodily injuries such as private healthcare. 

Wrap-up Insurance

For a larger specific project, wrap-up insurance will work better. This liability protection protects all contractors and subcontractors under a particular project against exposures to third-party damages and injuries. Usually, the general contractor will get wrap-up insurance for a more significant project with a more extensive liability. Still, every subcontractor involved in the project is also required to pay for the coverage. 

Licensed Contractor

This contractor has a valid and updated license to carry out his construction duties. The respective authority usually awards licences to contractors who are then legally approved to perform their job. The law permits a licensed contractor to work on a specific project and makes him/her liable for any mistakes.

Contractor bonded and insured.

A contractor that is bonded is usually one that has obtained a surety bond. This policy usually safeguards the owner of property from certain risks related to the duties of the contractor. For example, where a contractor fails to finish a particular task, the bond offers compensation to the property owner. In addition, an insured contractor has a cover against risks associated with his or her construction activities. Which might include liability protection against damages caused to the client's property or injuries caused to others while doing the job. When a contractor is both insured and bonded, he/she has more possibility to land more significant projects. 

General & Independent contractors

General contractors might be contracted by a principal (clients) to carry out several tasks. The general contractor will then be the one in charge of completing some of the tasks and delegating some others to subcontractors. 

Independent contractors are usually those who directly offer their services to a principal requiring the service. The independent contractor will then perform the entire task as requested by the principal (no other subcontractors involved). 

Conclusion

Every industry needs the services of the construction industry. The Canadian economy has immensely benefited from this. Construction is the bedrock of any economy; therefore, there is a need to ensure safety in business activities to ensure the industry's continuity. The workers and businesses shall always be protected through an effective and reliable insurance plan.



Surety AssociationThe Surety Association of Canada (SAC) is the national trade advocacy association that represents the interests of the surety industry across Canada. Its members consist of primary surety firms, surety reinsurers, surety/insurance brokers, and other organizations that provide related and complementary services to the surety industry

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