11 Aug 2015, 12:37 — 5 min read
What is the formula for success? A business consultant would suggest enhancing productivity through innovative ideas for attaining success. On the other hand, a risk consultant would propound the theory of assessment of business related risks.Both are equally right and interestingly, neither can be achieved without the other.
Successful identification and effective hedging of operative, financial, and human risks that may adversely affect a business are the cornerstones of any profitable undertaking.Though a necessity for all organisations, risk management is of critical importance for enterprises that operate at multiple sites or are involved in a wide array of complex operations. Such enterprises cannot solely depend on a handful of employees. Projects undertaken by contractors serve as an ideal example of this genre of business.
Here are some FAQs regarding risks faced by contractors.
What type of risks does a contractor face? Are these risks different for different types of contractors?
Various industries have various types of contractors. Though each business activity is unique and encompasses procedures and techniques specific in nature, the following are the common risks faced by all:
How can one mitigate such risks?
A contractor can protect himself from financial losses due to some of the above risks by opting for these insurance policies:
This insurance policy is a safeguard that protects a contractor’s office/ workplace/ warehouse from fire.
Group Health Insurance (GHI)
A contractor may facilitate health checkups and medical reimbursements of his/her workers by opting for Group Health Insurance Plans.
Workmen's Compensation (WC)
WC insurance policies cover the contractor’s liability towards his/her employees under Workmen's Compensation Act 1923, Fatal Accidents Act 1855 and current labour rules. Compensation for total disablement, partial disablement and death during the course of employment is provided for under this policy.
A contractor works in a complex business setup. It is advisable to opt for these insurance covers for maximum relief and financial support in crisis.
Posted byGlobalLinker Staff
We are a team of experienced industry professionals committed to sharing our knowledge and skills with small & medium enterprises.
23 Jan 2023, 13:06
Most read this week