Construction Insurance

Construction Insurance

The New York Market for Construction-related general liability risk is becoming smaller and more expensive each year as legal costs increase and carriers change their policy. Whether you are a general or sub-contractor, owner or developer, managing your individual risk exposure has become more important than ever. MEK Financial Services Corp. can help you place the proper coverage and monitor your plan throughout the year as your work-scope changes.

It’s important to be certain that the proper risk coverage is always in force. This is true, right from the initial planning phase, and then on to the completed work. Therefore, the real key is to have a carefully crafted, custom created, and fully specific insurance plan; one that you can rest assure that covers the full range of possible risk for each individual project your company is a part of.

Commercial General Liability

Commericial General Liability: General liability insurance guarantees protection against the risks, potential lawsuits, accidents and/or injuries that can occur on any given project. Our team understands that the needs of contractors are ever-changing as demands change from project to project. At MEK Financial Services Corp., we will work with you from the inception to the completion of each project, ensuring that you are properly classified and carry the required coverage that you will need to perform the services that you have been awarded. We will actively service you – providing assistance with aspects of your project stemming from contracts or agreements to reviewing your sub-contractor’s insurance to make sure that you are properly protected at all times.

Commercial general liability insurance is your first port-of-call when it comes to covering risks. Particularly if your business is construction, CGL is imperative to the smooth running of your project, from the initial planning stages all the way through to completion.

Commercial general liability insurance enables you to move forward with your work, knowing that your workmen have security, your company’s assets are protected if the worst should happen, and your business can move forwards and survive if an incident should occur.

CGL may not be at the forefront of every brick laid, but it’s just as important a foundation to your project as the physical structure itself.

Per Project Policy

Commercial general liability insurance policies have a limit of all liability, the most that the policy will pay on behalf of it’s insured during a policy period. A per project aggregate limit extends the limit to apply separately to each of our insured’s projects. The per project aggregate can be put in place for the contractor who works on multiple projects, making it cost effective for our insured.

As a business owner, or senior executive, you will know that making sure your insurance coverage for any specific project covers all the possible bases can be a truly difficult and time-consuming task.

This is why so many companies choose to have unique and specific custom-built insurance packages crafted to cover all key risks for any single project. If you want to make sure that all the many aspects of an upcoming project are covered exactly as you would want them to be, it pays to consider the creation of such a project-specific program, which is often known as mini-wrap insurance.

Builder’s Risk Insurance

MEK Financial Services Corp. understands that the building of a structure can pose the threat of possible damages or arising claims. Obtaining a builder’s risk policy can provide coverage for a structure that is under construction as well coverage for the materials that are on site, whether they be waiting to be installed or being transported to the job site.

As experienced project managers and senior executives know, each phase during the completion of a specific construction project will present its own key situations and different challenges. It’s also true that an over-arching policy can be extremely expensive – and end up with the company paying for coverage which, at times, it doesn’t actually need.

It is often more effective to tailor a specific and unique builder’s risk insurance package. This will optimize the coverage offered right throughout the lifespan of your project, while taking into account the different phases of construction. This has proven to provide the style of coverage which many companies find best meets the needs of their key projects.

Wrap-Up

As an owner or general contractor on a larger project, concerns such as completing the project on time and on budget, keeping employees safe and making sure that quality work is delivered may arise. A wrap-up insurance policy can help alleviate these concerns and make sure that everyone involved on your project is properly covered. This policy is a sweeping blanket coverage that protects owners, contractors and/or sub-contractors. There are two different programs:

Owner-controlled insurance program (OCIP): The OCIP is set up by the owner of the project for the benefit of the General Contractor to cover all listed sub-contractors.
Contractor-controlled insurance program (CCIP): The general contractor may use a CCIP to extend coverage to all subcontractors awareded the project.

As experienced project managers and senior executives know, each phase during the completion of a specific construction project will present its own key situations and different challenges. It’s also true that an over-arching policy can be extremely expensive – and end up with the company paying for coverage which, at times, it doesn’t actually need.

It is often more effective to tailor a specific and unique builder’s risk insurance package. This will optimize the coverage offered right throughout the lifespan of your project, while taking into account the different phases of construction. This has proven to provide the style of coverage which many companies find best meets the needs of their key projects.

Sub-Contractor Defaults

MEK Financial Services Corp. realizes that general contractors are held responsible for sub-contractors’ defaults such as non-completion of the project and/or the failure to fulfill their contractual obligations. This policy provides coverage for circumstances such as the cost of completing the scope of work or the cost of correcting errors.

If you have ever been involved in a project where one or more sub-contractor defaults, you will be fully aware of the level of havoc this can cause. If this hasn’t happened to you yet, you may well shudder at the potential difficulties should this happen.

You’ll already know that bonding is one possible action to take. But as a proven alternative to this, it pays to consider a specific subcontractor default insurance policy. This policy will allow you to handle a defaulting contractor situation without any loss to your company. If such a situation could happen to you, then this is an effective option well worth carefully considering.

Owners & Contractors Protective

As a property owner or general contractor, you are ultimately held responsible for the acts of any hired sub-contractors, consultants or independent contractors working on your behalf. This policy provides the liability coverage needed for the work performed by all hired parties.

If your company is involved in a project that relies not only on the efforts of your own people, but also on work from one or more contractors, you’ll know just how costly and damaging it can be should they let you down.

This is why many businesses are eager to take action to mitigate such happenings. The answer is often to be found in the use of owners and contractors’ protective insurance. With such policies, and unlike with a project liability policy, you as the owner of a specific project, would also be the named beneficiary should a contractor be liable for a claim, but they are then found to have inadequate coverage.

Performance Bond

If you currently work as a contractor in either the public or private sector, or would like to do so, you’ll know that your chances of being successful in your bids for such work may be dependent on your having adequate bonding capacity.

Having this in place helps you satisfy one of the key requirements for both public and private works. It pays to take time to provide such a performance (sometimes also called a contract) surety bond, which is issued by a bank or insurance company. You may also wish to consider increasing your bonding capacity to allow you to apply for further work.

Bonding provides a vital guarantee that you will perform all your work in compliance with a construction contract. This is why it pays to make sure the right level of bonding capacity in place at all times.

Bid Bond

A bid bond is often a pre-requisite if you are trying to obtain construction work for your company. This operates as a guarantee for those awarding such contracts. It provides this guarantee for a customer if the situation arises where a contractor fails to enter into an agreed contract, or does not undertake the work at the price which has been agreed.

The purpose of the bid bond is then to recompense the other party for the difference between the original bid submitted by that contractor and the next lowest bid. This applies up to the total amount of the bid bond that’s in place. This is often a key provision to put in place before bidding for any such work.

Payment Bond

If you are in business as a contractor, the suppliers you work with, and any sub-contractors you might appoint, will want to be sure that they will always be paid for the work they undertake or materials they have provided. Project owners will need to be certain that the finished project will be free of liens. Such liens mean that there is a right to keep possession of another’s property until a debt owed by that other is discharged.

One way to provide the surety and peace of mind all parties require is through a payment bond. This will often be a pre-requisite for consideration. Therefore it is wise to make sure that any such bond requirements are fully in place.

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