Gone are the days of simple security at the jobsite. In the past, security measures such as a fenced job site with locked gates at night were a common requirement on a builder’s risk policy proposals. Due to the market hardening and increase in fire losses in recent years, many carriers have updated the protective safeguards and conditions on builder’s risk policy proposals.
The safeguards and conditions can vary on a case-by-case basis depending on several factors such as location, construction type, value of the project, as well as equipment and material being kept on site. Some carriers will provide discounts for the security measures and in other instances carriers will consider the project uninsurable without the safeguards and conditions.
Some of the most common required protective safeguards and conditions are:
- Fencing – depending on the carrier this can be very specific or ambiguous. Typically, a 6-foot chain link fence surrounding the entire project and materials with gates that are locked during non-working hours is considered the most common.
- Lighting – this can be as simple as lighting at entrances and exits or as extreme as lighting the entire project from sundown to sunrise.
- Signage – no Trespassing signs.
Below are some updated or new protective safeguards and conditions being placed on policy proposals:
- Carrier approved site surveillance system for the duration of the project
- Onsite water and hydrants active prior to vertical construction
- Water flow detection devices
- Construction in accordance with Geotech report
- Acceptable water damage mitigation plan
- Completed building must be placed on a permanent property policy upon substantial completion
If there is a loss and it is determined that the safeguards or conditions were not adhered to the carrier can and may decline coverage. It is important to review any protective safeguards and conditions in the proposed policy to ensure they can be complied with and ask for clarification for any that are unclear.
Contact an MMA advisor for all your builder’s risk needs.
