COVID-19 has disrupted many economies around the world. Governments imposed lockdown measures and stay-at-home policies to slow down the spread of COVID-19. As a result, construction of buildings and other infrastructure are forced to halt their operations. Many companies were caught off guard and unprepared for the impact of stopping their business operations.
Delayed Project Completion
One of the adverse effects of the pandemic on the construction industry is project delays. The building of infrastructures took a hit due to the implementation of lockdown measures. The measure compelled construction companies to stop their operations.
Moreover, there is a workforce shortage as numerous construction workers contracted the virus and are unable to do their work. There is also a shortage of building materials as the supply chain felt the impact of lockdown measures.
Consequently, many ongoing constructions will not meet their target completion deadlines. Infrastructures scheduled for the inauguration for this year will not push through. It seems that project delays might persist in the foreseeable future.
Incurring Cost Overruns
Whenever projects are delayed, the actual construction cost might exceed the allocated budget. The longer you postpone a project, the higher the chances that you will run into additional expenses.
You will be paying more for your human resources' labor costs for additional days needed to complete the project. A shortage of materials might drive its price, and you will end up spending more on acquiring those materials. Unfortunately, contractors are blamed for the extra costs of completing the project.
Benefits of Having Contractors Insurance
Contractors might run into potential risks and losses brought by the current health crisis. In these uncertain times, you must protect your contracting business through the contractor’s insurance.
Contractors Insurance could provide you with worker’s compensation insurance. It can help pay the medical expenses of and lost salaries of your worker who got injured while working. You could include in the policy the coverage for any losses brought by the pandemic.
Right now, it is hard to find clients due to the current economic conditions. But having liability insurance will put your business in a better position to attract new clients as liability insurance is among the requirements of some clients.
Some many risks and losses lie ahead due to COVID-19. It would help if you secured your contracting business by getting the right insurance coverage. It is your responsibility to prepare your business for any unforeseen conditions like the pandemic.
The contractor's insurance is there to protect the workforce from unemployment or lack of benefits due to the coronavirus pandemic and subsequent quarantine. As an employer, you should be able to provide them with a safe and mutually beneficial policy that can help them survive this crisis as quickly as possible.
At Black And Associates Insurance, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (509) 464-0058 or Click Here to request a free quote.
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