Review Your Builder’s Risk Policy Before Starting Your Next Contractor Job
Spring is right around the corner, and so is the perfect time for fresh new construction projects. However, before you take on your next project, ensure that you review your Builder’s Risk Insurance policy. Coverage, which was adequate for your last project, may not provide the same protection for your next one. Since each project varies in scope, size, and risk exposure, reviewing your policy becomes critical to ensure you have the right coverage, after all, one size does not fit all.
Key Considerations:
Having a detailed conversation with your insurer is essential to ensure that you understand your coverage and fill in any gaps timely. As mentioned earlier, each project is unique and has its own set of requirements for everything – including insurance coverage. Here’s what you should consider:
- Does your policy cover temporary security fences/scaffolding, or do they need to be added?
- Does the project involve hot or cold testing? If so, does your policy include or exclude coverage for these risks?
- Does your policy cover unforeseen, but likely circumstances such as power surges, boiler explosions, and mechanical breakdowns?
Another section of your policy that can often be overlooked is the Additional Coverages Limitations. This section includes a very important part called the “occupancy and use” coverage, which automatically ends your coverage as soon as the property is occupied or put to its intended use, whether fully or partially. If your project might be occupied earlier than its completion, you would require a Permission to Occupy Endorsement so that your coverage doesn’t end abruptly. Otherwise, you may be left financially vulnerable and exposed to significant risks. Therefore, ensure that you fully understand your policy from your insurer and make any due changes in time.
While we hope your next project is successful and exceeds expectations, we also suggest you have a detailed conversation with your insurance provider to ensure that your builder’s risk policy aligns with your current needs. If you’re feeling lost about gaps in coverage and want peace of mind, feel free to drop us a text and we’ll make sure that your upcoming projects are protected from start to finish.
For expert advice, contact Shayne Bevilacqua at Professional Liability Insurance Group.
Call or Text us at +1 (877) PLIG – 123, That’s (877) 754 – 4123
