Commercial Builder’s Insurance

Why do I need Commercial Builder’s Insurance?

• Protection for property, tool, supply and equipment losses due to fire, vandalism, theft and more
• Protection for equipment breakdowns
• Protection for liability losses due to injury or third-party property damage
• Protection for errors and omissions
• Protection for loss of income due to business interruption and more
• Protection for automobile losses due to accidents and vandalism
• Protection for cyber losses due to data loss, credit card breach and other digital threats

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Commercial Builders face unique risks

As a builder the risks you face are unique to you and your insurance should reflect that. Commercial Builder’s Insurance will provide coverage for anything from property damage and injury to theft or vandalism.

Property Exposures:

• Property exposures at the building contractor’s own location are usually limited to an office operation and storage of materials, equipment and vehicles. If the building contractor is involved in framework or masonry, lumber or bricks may be stored on site, increasing the exposure to fire, inclement weather, vandalism and theft.

Inland Marine Exposures:

• Inland marine exposures may include accounts receivable, builders’ risk, contractors’ equipment, goods in transit, installation floater, and valuable papers and records. Subcontractors generally have their own equipment, but the building contractor may arrange for the lease of larger equipment, such as cranes, for subcontractors to use, either with or without operators. The contractual agreements with the rental firms determine who is responsible for any damage to the rented equipment.

• If the building contractor performs tasks at the job site, equipment may be subject to water hazards, drop and fall from heights, or being struck by other vehicles.

• Builders’ Risk Coverage is an important coverage for many building contractors. Besides obtaining coverage they may need to coordinate their subcontractors’ coverages and terms. Exposures will vary depending on type of project. New construction versus renovation building is also a major consideration.

• Surety bond exposures arise from the requirement for many construction projects to obtain financial guarantees for the completion of projects and payment of labour and supplies.

Occupier’s Liability Exposure

• Occupier’s Liability exposures at the contractor’s premises are usually limited due to lack of public access to the premises.
• The building contractor is ultimately responsible for the job site, all injuries or property damage that results from construction operations, including those that are due to the acts or omissions of subcontractors.
• Heavy machinery used for excavation may cut power lines, disrupting service to other homes or businesses in the vicinity.
• Welding presents potential for burns or setting the property of others on fire if not conducted safely.
• The contractor’s employees can cause damage to the client’s other property or bodily injury to members of the general public or employees of other contractors. Tools, power cords, and scrap all pose trip hazards even when not in use.
• If there is work at heights, falling tools or supplies may cause damage and injury if dropped from ladders, scaffolding, or cranes.
• Equipment, building materials and property of others left at job sites are susceptible to theft and vandalism.
• Some sites may present significant attractive nuisance hazards as well.

Contractual Liability Exposure

• Contractual liability exposures are significant for building contractors. While it is important to control physical hazards, the absolute key to successful performance as a building contractor is likely to be management of contractual language. Catastrophic financial losses (and expensive litigation) may arise if the building contractor fails to verify that subcontractors’ certificates of insurance are accurate and the limits are adequate. In addition, the building contractor and project owner must be included as additional insureds on the subcontractors’ policies – the specific terms may play a significant role in who pays for a loss.

Completed Operations Liability Exposures

• Completed operations exposures are high. The designer and engineer of the project, the quality of materials, and the construction details are all critical. Failure of the insured to maintain quality control and full compliance with all construction, material, and design specifications may give rise to serious loss.

Automobile Exposures

• Automobile exposures may be limited to private passenger only as executive supervisors travel from site to site.
• If the building contractor is also handling part of the construction, workers, equipment and supplies may be transported to and from job sites.
• Hazards depend on the type and use of vehicles and radius of operation with the main hazards being upsets and collisions. Vehicles may have special modifications or built-in equipment such as lifts and hoists. Large materials such as air conditioners may be awkward and require special handling and tie-down procedures.

Workplace Safety Exposures

• Workplace safety exposures vary based on the size and nature of the job. When an executive supervisor is only reviewing and giving oversight, the exposure is clerical with some job site inspection. However, if actual construction work is done, the exposure should be reviewed based on the type of construction taking place.
• Control of the job site is the responsibility of the building contractor, who may be held responsible for any injuries of subcontractors on the job.

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