The last thing a developer or contractor needs to worry about is the viability of its insurance coverage. One of the most cost effective and time-saving actions a developer or builder can take is to ask a broker to review their insurance policies before a claim arises to ensure that there are no gaps in coverage.
Here are our top 10 tips that you need to look at before committing to a provider.
1. Either by yourself, or with an experienced Insurance professional, fully study and understand the contract(s) resulting exposures you may have relevant to your business and clearly understand the implications of coverage.
2. Take control of the insurance programme from the contractors.
3. Consider whether the insurance requirements of the contract are adequate. Are you underinsured? Think about the project’s scope of works – what could possibly go wrong and if so, have you had a conversation with your Broker about your potential exposures?
4. Effect additional insurance and increased limits if your exposure analysis reveals the need – there is no need to purchase cover you don’t need, however, “you don’t know what you don’t know”.
5. Where possible, as a key stakeholder, include your insurance broker in your project team to help with these decisions
6. Make sure policies cover all stakeholders wherever possible to avoid legal disputes between them – owners, developers, contractors etc.
7. Where possible, agree assessors to be used on project works and liability policies
8. Prepare claims handling manual with all relevant procedures and ensure it is passed to all stakeholders
9. In consultation with your broker ensure that you only use secure underwriters and those with excellent construction claims reputation – it’s important to ensure that you are confident that in the event of a claim, the policy covers you appropriately.
10. In the event of any claim incident ensure that a full file of photos, statements, invoices and time records are obtained and kept for many years after project completion. You can never to be too detailed.