Construction Projects—Coverage and Safety
by Nicki Hess
As summer draws to an end and a new school year begins, many districts may begin planning for renovations and new construction projects for the future. When projects arise, many questions are asked about property coverage during the construction phase such as: is additional coverage needed and if so, where do you get it? Other questions should address safety issues for the district if the district is the General Contractor.
Most property coverage includes an extension to cover newly acquired or constructed property. The property coverage offered by the TASB Risk Management Fund (the Fund) includes such an extension. The Fund’s coverage provides up to $1,000,000 to be used to cover direct loss in any one occurrence by a covered peril to additions, buildings, and structures under construction up to a term of 90 days with the district being the General Contractor. If construction is under contract to others then purchasing Builders’ Risk coverage is the answer. This property coverage is designed to protect the district against losses to property that is under construction.
Be sure to check the coverage language to determine what is offered for newly acquired or constructed property and what restrictions may be applicable before beginning new projects or renovations. Your General Contractor may be including this coverage, and its associated costs, in their construction bid.
Recently several injuries and deaths have occurred in the United States due to mishaps with cranes and other construction related equipment. Again, check the coverage language to determine what type of coverage is offered during the construction project. Large projects typically include the General Contractor and/or Construction Manager as additional insured parties. If the district is the General Contractor then the district should always follow the instructions provided by the manufacturer when using the equipment and check each piece for worn or damaged parts.
To discuss Builders’ Risk coverage further, contact your risk management consultant, the underwriting department or if you need assistant with safety tips, contact your loss prevention consultant at 800.482.7276.
