The Coverage Your Builder and Contractor Clients Forget to Buy
(Spoiler Alert: You can add it on to your proposals in minutes.)
Construction is everywhere. Whether you’re stuck in traffic because of highway repairs, watching new luxury condos go up, or building a residential home, new construction, remodeling, and renovations are all around us. And with construction comes risk… a lot of risk.
Below is a commonly misunderstood risk for many builders (and the insurance professionals who serve them.)
Injuries happen: While walking a potential buyer through a project, opportunities for injuries abound. From a twisted ankle to a bump on the head, the injured party (the potential buyer) can claim negligence on the part of the builder and sue for damages. The litigation involved in settling that dispute can hold up the completion of the project, and cause significant financial loss to the builder.
Coverage for injuries sustained on the building site are seldom covered under a standard builder’s risk policy. Most require a separate General Liability policy in the builder’s name.
For your building contractor customers, here is all you need to know about securing a Builder’s Risk Policy:
- Policies are quick and easy to secure.
- The proper coverage typically is pennies on the dollar relative to the value of the project.
- General liability quotes should be offered in conjunction with every builders’ risk proposal.
We’ll be talking about the ‘lots of opportunities’ in our Take a Look at New Construction blog where we discuss the hot spots for construction and why it matters to you.
