Construction sites either for building or other usable structures are possible death traps and injury prone environments, which poses danger for site workers and passers bye.
This is worsened where quacks and non building professionals take up construction works in other to make ends meet, therefore making construction environment more risky for workers and other people around.
In Nigeria today, like many other developing countries, building construction is very much on the increase particularly as result of the yawning gap for more housing and infrastructure development, which shortfall experts say is close to 16 million units.
Purchasing a liability insurance policy therefore could offer the builder, contractor or owner protection against lawsuits resulting from unintentional mistakes, including at construction sites. If, for instance, a bricklayer at a construction site mistakenly drops load of concrete and accidentally this falls on somebody at the ground floor, then the insurance policy would pay for any damage caused resulting as a result of the mistake.
Builders Liability Insurance
Builders Liability Insurance also called construction insurance is one of the compulsory insurance policies in Nigeria covered by the Insurance Act 2003. The insurance policy was meant to protect the site workers against any construction related risks or passersby. The site workers whom the insurance policy seeks to protect include- bricklayers, artisans, welder, architects, engineers and carpenters. It also covers third parties and members of the public from all construction related risks including collapse of building under construction.
Section 64(1) of the 2003 Insurance Act states that “No person shall cause to be constructed any building of more than two floors without insuring with a registered insurer, his liability in respect of construction risks caused by his negligence or the negligence of his servants, agents or consultants, which may result in bodily injury or loss of life to or damage to property of any workman on the site or of any member of the public.
According to the law, the duty to insure under subsection (1) of this section shall arise when a building is under construction.
Subsection three states that a person who contravenes subsection (1) of this section commits an offence and on conviction shall be liable to a fine of N250, 000 or imprisonment for three years or both.
Builders and construction workers who operate their own business need quality liability protection to provide peace of mind.
The benefit of this policy is enormous to be ignored, as any risk associated with building construction is fully covered by insurance. Site workers that may suffer any disability, injury, damages or death as a result of collapse of building under construction or related risks will be fully compensated.