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Is Insurance a Safety Net for Negligence? An incorrect answer could cost you $400,000

Image from Pixabay

In a recent case reported by Risk & Insurance, a construction manager went against the advice of various onsite experts when renovating a costly home and expanding its basement. Though he was advised to create concrete reinforcements to avoid instability, the manager proceeded without appropriate caution. A few hours after excavation was complete, the dwelling’s east wall caved in.

While the wall collapsed partially due to “movement of the earth,” the event was attributed to workmanship error. Had the owner of this construction company underpinned, as advised, the damage would have been minimal or nonexistent.

Although the manager filed a claim to cover his losses, on account of his negligence, he was responsible for the full bill, costing him his reputation and a hefty sum of $400,000.

Insurance is vital for businesses, in conjunction with wisdom. Be wise, be cautious, and surround yourself with experts you will listen to.

Insurance does not cover negligence or carelessness.

For more information on insurance for contractors, visit our website just for contractors.

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Created By
Anna Wegner
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Credits:

Created with images by aitoff - "brick brickwork ruin" • stux - "demolition collapse broken"

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