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By Ben Osborne

There’s a significant amount of risk involved in any construction project, so builders and contractors can’t be too careful when it comes to securing Builder’s Risk coverage for their projects.

One way to ensure compliance is to be aware of the latest trends in insurance coverage and contract terms.

Think about how coverage responsibility is addressed in your contract. The provisions within the American Institute of Architects (AIA) documents need to be expanded to provide clarity on covered matters. Include in the contract who will be held responsible regardless of the cause of the problem.

Consider the following for Builder’s Risk insurance on all projects.

Deductibles Who is responsible for the policy deductible regardless of fault?

Damage to existing structures When the project involves renovations and additions to existing structures.

Delays in start-up costs Lost income or expenses due to a construction delay from a covered cause of loss

Construction defect extensions (LEG III) Property damage resulting from defects in design, materials or work. Capacity and underwriting has tightened due to stricter underwriting requirements.

Protective safeguard requirements Insurers are mandating fencing, cameras, water monitors, security guards and other protective measures as requirements of coverage.

Water damage deductible Increased deductibles apply to losses resulting from water intrusion.

Property stored outside Are there exclusions for materials (insulation, exterior panels, etc.) stored in the open but not protected?

Tower cranes integrated with structure How are the crane and mobilization costs covered? Cranes covered outside the BR policy can create gaps in coverage for project delay expenses and lost income.

BR as a primary coverage/Waivers of Subrogation Owners and contractors should agree upfront on BR as the primary coverage for damages during construction.

Temporary storage/Off-site fabrication Understand the policy limits and requirements for scheduling lay down areas and off-site fabrication exposures.

The experienced Design & Construction team at Oswald can help you get the coverage you need and plan ahead in case of an accident.

For more information, contact me below: