Masonry Magazine July 1967 Page. 5
insurance for contractors
Part IX
Builders' Risk, Installation Floaters, Contractors' Equipment Floaters and Architectural & Engineers' Professional Liability are covered in this installment of Insurance for Contractors.
BUILDERS RISK INSURANCE;
INSTALLATION FLOATERS;
CONTRACTORS' EQUIPMENT FLOATERS
The special problems of providing adequate Property Insurance during the course of construction are dealt with under Builders' Risk policy forms designed for that purpose. A good many variables tend to surround the subject, including not only the degree of coverage contemplated by several different policy forms, but also who is covered and even what the coverage is called. In a limited space we shall try to simplify matters a bit.
Because reporting form policies calling for monthly submission of values to be insured are largely a thing of the past, we shall concern ourselves with the recommended Completed Value Builders' Risk policy and its Inland Marine counterpart, the Installation Floater.
MASONRY July, 1967
SECOND EDITION
Revised to include the new policy forms and entirely new material on:
* Contract Bonds
* Architects' and Engineers' Professional Liability
* Contractors' Equipment Floaters
* Builders' Risk Insurance
* Employee Benefit Liability
* Uniform Hold-Harmless Clauses
* Composite Rating
by
Walter T. Derk
Assistant Vice President
FRED. S. JAMES & Co.
Insurance Brokers and Consultants
Since 1858
They may be written in the name of both the owner and the general contractor, either of them or any one of several variations; coverage may also apply to the work of subcontractors.
The prudent contractor, therefore, should review contract specifications to determine his obligation for this form of coverage.
He should guard against an outright duplication of coverage, however, since in many cases the owner or general contractor may have already purchased a policy protecting the entire venture.
Equipment and machinery, including electrical, plumbing, heating and air-conditioning systems should be insured as required, while in transit from manufacturer to job site and during the period of actual installation or testing until fully released.
Coverage generally terminates when the insured's interest in the property terminates, when it is accepted, or when it is occupied by the owner. Covered building materials, such as bricks, steel and lumber, are insured until actual installation into the real structure or until the insured's interest terminates, whichever happens first.
In some states, similar coverage is afforded the contractor under Special Builders' Risk Form, Contractors' (Please turn page).
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