WEDNESDAY, APRIL 28, 2021
For construction contractors, there is nothing more important than safeguarding your works in progress. After all, if something were to damage the property and interrupt your progress, then you might face a huge financial setback. At this point, it’s critical that you have builder’s risk insurance ready and waiting. Your policy will be there to assist you following property damage at construction sites.
However, your builder’s risk policy will not offer the same coverage to injuries or property damage that you cause to other parties. In this case, separate liability insurance benefits will provide the necessary benefits. Though separate from your builder’s risk policy, liability coverage is equally important. Let’s take a closer look at how these benefits work.
What does builder’s risk insurance cover?
Builder’s risk coverage will pay for unexpected, unavoidable hazards occurring in property under construction. Some of the incidents covered by your plan might include:
Certain weather-related hazards, such as hail and lightning
Vehicles crashing into the structure
Your policy will cover the structure under construction, equipment housed at the work site, and materials that have yet to be installed on the project. Coverage might also cover temporary structures and emergency services fees.
However, if you were to cause harm to someone else involved in the project, your plan will not pay for their losses. Instead, you will need to turn to a benefit known as general liability insurance. This policy might cover third-party losses like:
Injuries on your property
Damage to rented commercial space
Property damages caused by you or your team to someone’s existing property
When it comes down to who is responsible for paying for damage done to someone’s property, negligence is often the deciding factor in whether you use builder’s risk insurance or liability insurance.
Negligence is a major concern in construction. After all, if you make mistakes in your work, then you could wind up causing your client a lot of harm (even if you didn’t intend to do so). Still, if you are responsible for harm done to someone else, then you can expect to turn to your general liability insurance as opposed to your builder’s risk policy.
All in all, builder’s risk insurance is designed to cover damage to a construction project that is under your authority. However, liability insurance extends to losses that affect others, and are your business’s fault.
If there are any major exclusions that leave you with gaps with which you are not comfortable, additional insurance can be purchased to cover most of these risks. There is a lot at risk in a construction project, and adequate coverage is of vital importance.
No Comments
Post a Comment |
|
Required
|
|
Required (Not Displayed)
|
|
Required
|
All comments are moderated and stripped of HTML.
|
|
|
|
|
|
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only.
It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional
in your state. By using this blog site you understand that there is no broker client relationship between
you and the blog and website publisher.
|
Blog Archive
2023
2022
2021
2020
2019
2015
2014
|