Site insurance

What you need to know about all-risk construction site insurance!

Construction and building are considered a very dynamic sector in Quebec, operating year-round. It involves many different trades, such as carpenters, joiners, plumbers and electricians, technicians, architects and so on. In addition to these professionals, a building site also involves equipment, materials and other high-risk items. Hence the need for worksite protection, and more specifically, all-risk construction insurance.

Regardless of the type of project - residential, commercial or industrial - or its size and importance, you need to plan for appropriate coverage. You could call on the services of a commercial property and casualty insurance broker. He or she will be able to help you choose the coverage best suited to the needs of the structure and its worksite. The project in question may be residential, commercial, industrial, civil, such as a road or tunnel, institutional, such as a school or hospital, or energy-related, such as a wind or hydroelectric farm.

What protection does all-risk construction insurance offer?

Professionals can choose from a wide range of building site insurance cover. To begin with, this type of cover not only covers the building under construction, but also general civil liability, known as RCG, in addition to wrap-up liability.

All-risk site insurance

This guarantee enables contractors to cover damage and risks to the construction work in progress, as well as to their equipment, for the entire duration of the project. construction project. Coverage also extends to tools, machinery and building materials.

To be more precise, insurers take into consideration the history and background of the contractor, subcontractor and project manager wishing to take out all-risks construction site insurance.

Fire, theft and vandalism rider

On a building site, it's quite normal to find flammable materials and machinery. That's why it's a good idea to include a fire, theft and vandalism endorsement in your construction insurance policy. These claims are usually included in construction insurance. The same applies to materials transported for use in the project. They are also covered, as is damage associated with bad weather, wind, hail and lightning.

Forecasting for cost reduction

Unforeseen circumstances can arise at any time during a construction project. They can cause delays, and for a construction contractor, each day is very costly, depending on the size of the project. For example, the construction of a commercial structure such as a Spa-Détente, which is not delivered within the agreed deadline, can result in the loss of significant revenue for the contractor. Hence the need to cover the company against the risk of loss of anticipated revenues, associated with incidents previously covered.

Exclusions

The level of coverage provided by worksite insurance is very broad, but there are some exclusions that are not covered. This is the case for theft by an employee, freezing or penalties due to a delay in work. the work. Damage associated with pollutants is also excluded.

However, it would be possible to have more comprehensive coverage by including additional benefits such as material and equipment breakdown, pollution, earthquake, sewer backup and claims.

The contractor should consider taking out project pollution insurance, if he believes that the construction work may have a serious ecological impact on the environment. In such cases, it would be wise to include such an endorsement in your insurance policy.

General liability insurance

Contractors and all other professionals working on a construction site benefit from civil liability coverage. Obviously, they must take out this coverage for their businesses. The purpose of such insurance is to cover them against potential claims, which may arise as a result of material or bodily damage caused to others. This insurance covers both the contractor and its employees. It is annual, but may be adjusted when the insurance contract is renewed.

Wrap-up insurance

A construction site is a place where accidents, injuries and property damage are commonplace. That's where Wrap-up protection comes in, covering owners against claims associated with such incidents. It covers specialized professionals, employees, owners and subcontractors working on a project, under a single insurance contract. This contract is valid for the entire duration of the work, with an additional period of one to two years for products and completed work. During this period, any damage, breakage or injury occurring on site after the project has been completed is covered.

Engineers and architects working on the construction site are required to take out their own professional liability insurance. However, in the case of a major project, it may be possible to include all specialized professionals in the same insurance policy, just speak to your insurance broker.

Which contract and for how long?

All-risk construction site insurance is a customized contract. It takes into account the particularities of each project and every construction. Indeed, the value of the project plays an imminent role in the establishment of this type of contract. In the case of a contractor carries out 5 projects worth $250,000, and another two worth $325,000, he has the option of adding an additional policy to his contract for the last two projects with a higher value. Similarly, if the additional projects are of lesser value, an adjustment can be made to the insurance contract. It should be remembered that this type of contract is offered on an annual basis, and any adjustments can be made at the time of renewal.