May 18
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Is your church starting a construction project this spring? Make sure you have the insurance protection you need. A traditional liability policy provides coverage for people injured on construction sites, but there are risks associated with construction projects that require special insurance. CMI can help you review all insurance and contract documents, callus today.
What you need to know
- Standard church insurance policies don’t cover new construction.
- Before a project begins, either you or the contractor must purchase builder’s risk coverage to insure the new building or addition during the construction phase.
- Clarify in writing who’s responsible for insuring the building while it’s being constructed.
- After the project is completed or occupancy begins, you’ll want to cancel the builder’s risk coverage and endorse the building onto your policy.
- Get a certificate of insurance if you are requiring the contractor to carry insurance.
Some common claim examples include:
- Rain causes exposed wood floors to warp and crack.
- Wind damage to walls that are not secure.
- Workers drop windows while installing.
- Thieves target valuable construction materials, like copper pipes.
- Church member overloads equipment in truck.
- Fires do far more damage to an unfinished building than one with fire prevention systems in place.
Before a project begins, either you or the contractor must purchase builder’s risk coverage to insure the new building or addition during the construction phase. Brotherhood Mutual offers a Builder’s Risk endorsement which covers unfinished buildings and the construction materials on construction sites.
Contact CMI today to add this coverage to your policy. Not a Brotherhood Mutual customer yet? Contact us and we’ll help you get connected.
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