What Is The Protection Offered By Property Developer Insurance?
Posted by SELF BUILD INSURANCE on June 24th, 2022
Property developer insurance protects builders (whether professional contractors or individuals) from liabilities that may arise during a property development project. The amount paid towards insurance depends upon the type of project, the building materials that will be used in the project, the duration of the project, the machinery that will be required for the project, and number of people on the project, amongst others. All these factors reveal the possible liabilities that might arise in a project, and will help insurance providers assess the amount that will adequately cover all these potential liabilities. Let us nowlook at the protection offered by property developer insurance.
Protection for building and machinery
Developer insurance offers the builder protection up to the full value of the contract, for physical damages that the works suffer. It protects the building and all the equipment used in the project from damage due to natural disasters like floods, fire, storms, wind, earthquakes, etc. It also covers damage suffered by the property on account of theft or vandalism. In simpler terms, it protects builders from unexpected acts that damage the project equipment and building they have no control over.
Protection for people in the vicinity
A builder has a duty to ensure that the property development project does not harm the people employed for the works and any third-party on or around the project site. The former is the liability the builder has as an employer and is applicable to everybody employed for the project. The latter is called the public liability of the builder. It is very much possible that any of the people working in the project may accidentally get hurt as they work. Similarly, people walking by the project, or who happen to be on the site are also susceptible to accidents that may arise from the project itself. It is the duty of the builders to cover all the expenses that will be incurred by people in both the above scenarios, and property developer insurance covers these expenses on behalf of the builder.
Protection for tools and plant used
In addition to the building, machinery, and the people on the project site, the tools and plant used are also protected by developer insurance. In the course of the project, it is highly possible that the tools may be accidentally damaged to the point where they would have to be replaced. Tools and plant are also highly likely to be stolen from the project site. In both these scenarios, developer insurance covers the expenses incurred for replacing these tools and plant, whether hired or owned by the builder. This cover is also available for temporary structures that are set up on the project site, like portable toilets, site huts, etc. These temporary structures are essential to ensure that the people working on the site can work under good conditions and meet their basic needs. Property developer insurance also covers damages to these temporary structures.
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