Does construction general liability cover construction delays?
Construction contractors often cannot predict factors that will affect their work schedule, such as weather delays or a delay in obtaining building materials to complete a project. Such delays can be costly, and construction contractors need an insurance policy to adequately cover this type of liability.
Even “Acts of God”, such as a natural disaster outside of a contractor’s control, may bring liability issues to your contractor clients who are held to the stipulations of a legal contract. After a delay, it is hard for a contractor to make up lost time even if they manage to have their employees work extra shifts.
A construction delay can result in disgruntled customers who may take legal action. Such was the case in a lawsuit filed against Turner Construction Company where major delays occurred on a $300 million hospital project. The good news in this case was that the parties resolved the issue, and work resumed on the project a few months later. However, this is not always the case.
There are a few preventive measures contractors can take to prevent construction delays. These include having carefully vetted design plans, having a back-up plan to cover potential setbacks, and choosing subcontractors with a good reputation or those who they have worked with before.
Contractors cannot rely on the good nature of their clients in understanding why a construction project must be delayed. The best practice for construction contractors is to find professional liability coverage to protect their legal interests and business assets. A construction general liability policy will provide protection to contractors against delays in construction, including plans that are defective, theft of tools, equipment or supplies, or damage caused by weather events.
We have a construction general liability package to take care of your construction contractor clients and all of the unique risks they face on a daily basis. Contact us to discuss coverage options.