The building continues to move forward in many parts of the country. Contractors work quickly to complete projects and get to the next one. Sometimes in the frantic pace of the industry, property damage caused by builders causes more than just third-party damage.
When something fails due to a failure on the contractor’s workmanship, design or materials, the property owner may file a construction defect claim. As referenced by G.A. Mavon, not all workplace damage claims fall under a contractor’s general liability policy making a builder’s risk policy essential for some projects.
Delays happen for a variety of reasons not all within the contractor’s control such as a week of rainy weather. These are trickier claims to file, but they can cause a lot of headache for the contractor on top of the delay itself.
Unfortunately, if the subcontractor wasn’t paid by the general contractor, they may put a lien on the property owner for lack of payment. The property owner may then come after the general contractor as they have no recourse against the subcontractor. These liens may be for laborers, material men or suppliers.
Protect against the various property damage caused by builders with a builder’s risk policy in addition to a contractor’s general liability policy. With so many things that could go wrong, it is best to cover as much risk as possible.