Heavy Construction Insurance

One might believe heavy construction has come to a standstill due to the economy, but nothing could be further from the truth.  Infrastructure is still being maintained and advanced.  Funding is still there for many government projects and private projects.  However bidding for those contracts may have changed.  There are a lot of joint ventures now bidding and sharing payroll, equipment and materials due to streamlining job costs.

 

There are inherent risks with this type bidding, construction risks, and insured’s contractual obligations of which the client should be aware.  Along with insurance, these contractors are facing smaller profit margins, rising costs of materials and more conservative financing.  Even so, the outlook for heavy construction is good.  Insurance is being re-evaluated though.  Some are reconsidering umbrella limits, and moving from guaranteed cost programs to loss-sensitive.  Many are taking advantage of risk management services.  If you have questions regarding your Heavy Construction insurance needs, please talk with your agent or one of ours.

 

Commercial Insurance.Net, LLC Advisor is not an attorney, accountant or certified financial planner and makes no representations or warranties to that effect.  Always check with your chosen professional as to statements made in this blog for your particular situation.

Builders Risk Insurance

Many contractors carry the property insurance for the home or commercial building being constructed.  The policies purchased are called “builders risk”.  Previously these policies covered all key risks to be expected in the course of completing construction of the building.  However, due to the mortgage crisis and economy, we have seen many risk change on both sides. 

 

A builders risk policy does not include theft, vandalism or have a vacancy clause.  But due to lending practices, contractors often found they could not obtain funding to complete a project.  Therefore a project may sit idle for months, and that opens the property to the exposures of theft and vandalism.  Also, insurers needed to determine if the property was “vacant” for coverage under other perils.  This is beginning to present many problems unanticipated for both the contractor and insurance company.  I believe insurance companies will be forced into addressing these issues in the near future.  Please contact your agent or one of ours to talk about when coverage ceases on your builders risk policy.

 

Commercial Insurance.Net, LLC Advisor is not an attorney, accountant or certified financial planner and makes no representations or warranties to that effect.  Always check with your chosen professional as to statements made in this blog for your particular situation.