When it comes to New York construction projects, about the only things you can count on with any real certainty are delays. Whether it’s unexpected bad weather, shortages in manpower or supplies, problems with financing, or any number of other issues, it seems there are a thousand and one different scenarios that can bog down your project. And of course, that means wasted time and added costs.
While it’s difficult to plan for financial upheavals like the 2008 financial crash or catastrophic weather events, one tool you have at your disposal for managing inevitable delays is thorough preparation. And one of the most vital aspects of that preparation is getting your construction insurance coverage right.
While builder’s risk insurance is fundamental to your overall construction insurance coverage, you also need to make sure you’re aware of critical endorsements and extensions such as delay in startup (DSU) coverage, which kicks in if your project can’t be completed according to schedule due to an insured loss. There are also clauses in builder’s risk policies that can extend your policy to cover a delay in project completion due to other factors.
When choosing your insurance coverage, you also need to consider whether the insurance company is willing to adapt coverage if the project changes. If they’re not, that could spell trouble for you down the road, including higher insurance premiums and failure to meet lender requirements.
Another vital consideration when choosing coverage is the quality of the insurer’s claims administration. You need to be confident that your insurance provider is going to properly manage construction insurance claims and pay them quickly. This is critical when you’re up against time sensitive issues or need to make up for lost time.
Once you’ve secured adequate construction insurance coverage, one of the most important things you can do going forward is to keep your insurance provider in the loop on project developments. When you run into delays, you need to immediately let your insurance provider know so they can work with you to mitigate the loss.
Making sure your construction project is adequately insured can be a daunting task. But choosing the right construction insurance provider can go a long way in helping you sleep better at night. An experienced insurance provider can help you avoid the pitfalls of construction delays and ensure that your policy accurately reflects the scope, value and risks of your construction projects.
While it’s impossible to eliminate many of the delays you might experience, working with competent advisors and securing adequate construction insurance coverage is a big step toward keeping construction delays manageable. And that can help you protect your assets, your reputation, and your bottom line.