What is an Insurance?
An Insurance is a contract between two parties i.e. the insurance company (insurer) and the policy holder (insured). Under this contract, the insurer agrees to cover the losses faced by the insured in the event of some incidents which result in damages to the insured. The insured pays certain amount to the insurer known as premium.
Why is Insurance necessary in a construction project?
Construction projects are complex in nature and highly at risk of accidents resulting in damages to the property, machinery and most importantly to human life. In the event of such unforeseen incidents, the liable parties will be required to compensate the aggrieved parties. So in order to minimize this risk, the parties in a construction project get themselves insured by taking up various types of insurances.
What are the different types of Insurances on a construction project?