The construction industry deals with projects in which many things can go wrong. It’s possible to experience construction insurance losses when a mishap occurs, and the proper coverage isn’t in place.
Here’s a look at how to prevent losses on property development projects.
Set accurate timelines
It’s best to avoid rushing through a project. Many claims result from a builder falling behind on a deadline and then trying to catch up too quickly. It also happens when timelines are unrealistic, to begin with. So focus on getting the job done safely and accurately in a reasonable amount of time. The more you focus on quality performance, the more likely you’ll prevent costly future maintenance.
Review insurance certificates in detail
A contractor must present an insurance certificate to the client before arriving at the construction site. The certificate contains basic information such as the carrier and coverage limits. Trouble can result from a contractor thinking the coverage for a subcontractor is adequate when it isn’t.
Hold subcontractors accountable
Subcontractors should be held responsible for losses they cause, so they should pay an appropriate part of the deductible on a claim. You should have clearly written contracts that specify the subcontractor’s responsibilities and list the vendors involved.
When work relationships become too casual, the pleasure and distractions from it can slow down with business activity. It can also create complacency that leads to errors such as not thoroughly checking the coverage of general contractors and subcontractors.
Never compromise on quality
The cost of the property under construction affects insurance costs. If construction costs come down, it can reduce insurance costs as well. Nonetheless, don’t cut costs if it means creating exposure to safety issues. Avoid inferior materials that wear out faster. The more you reduce future risks, the more it will help build your firm’s reputation among the developer community.
Buy wrap-up insurance
It may be difficult to monitor the policies of all construction crew members, so wrap-up coverage provides general liability coverage for both the general contractor and the client. Wrap-up coverage is available for commercial construction projects worth $20 million and residential projects worth $10 million.
Consult a specialist
Many contractors are turning to specialists who broker and review insurance deals. These specialists typically have relationships with multiple insurance firms that provide construction insurance.
At Artisan Insurance Solutions, we can help you overcome construction insurance losses. Let us know about your business, and we’ll be happy to help you secure the appropriate contractors insurance in Los Angeles, CA.