If They Build It, We Will Come
As we move into 2017, it is important to look at forecasts of those industries that will have a direct impact on our businesses in the year to come. When it comes to the future of construction, Dodge has the answers. ConstructionDIVE, a top construction newsletter, calls the annual Outlook report from Dodge “a reliable bellwether of future activity in the residential, commercial, institutional, manufacturing, public works and electric utilities/gas plants construction sectors.”
Thankfully, Dodge has positive predictions for construction growth in 2017. The press release stated, “The report predicts that total U.S. construction starts for 2017 will advance 5 percent to $713 billion.” This is further broken down by segment, predicting 12 percent growth in the construction of single family dwellings and 6 percent growth in the construction of commercial buildings.
This growth will have a direct impact on the insurance industry. Not only does it mean more homes and commercial buildings to insure down the road, it means more projects that demand coverage during the course of construction.
Many property owners or tenants may think that they’re covered for claims under their hired contractor’s insurance policy throughout construction or renovation at their location. However, a contractor’s policy only provides coverage for construction-related claims. Additionally, owners or tenants may be responsible to pay for a claim if a contractor’s policy has cancelled or if the limits are insufficient.
Take the following real-life claim for example:
A new tenant within a three-story building was renovating his space prior to opening for business. A general contractor (hired by the tenant) left oily rags on the premises over the weekend that started a fire, which resulted in severe water and smoke damage to the building and to the property of the surrounding tenants. Though the general contractor was responsible for the loss, his general liability coverage had lapsed. The tenant’s policy responded since he had hired the general contractor. The incurred loss totaled $110,000.
USLI’s Construction & Premises Protective product offers coverage for both premises liability and vicarious acts of the contractor(s). Moreover, we recently reduced rates by an impressive 30-55 percent!
Our coverages advantages include:
- Broad eligibility to include ground-up construction or renovation of an existing building
- Risks with up to $5,000,000 in total project costs for general liability consideration
- Ability to offer short-term policies
- A++ rating by A.M. Best
Take advantage of the construction growth with USLI! If they build it, we will come insure it – with excellent coverage at an affordable price!
Please contact your regional Commercial Lines underwriter for more information or a quote.
As always, thank you for your support and business.
Written by Ginna Briggs
December 8, 2016
Contact Meghann Enright
Underwriter, Construction & Premises Protective Product Leader | 888-523-5545 Ext. 2743
Contact Sergio Ricciardi
Underwriter, Construction & Premises Protective Assistant Product Leader | 888-523-5545 Ext. 2510