Covid-19 is Another Reason to Assess your Roofing Insurance - Farmer Brown Insurance Agency - Contractor Talk

Covid-19 is Another Reason to Assess your Roofing Insurance

 
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Old 06-27-2020, 10:06 AM   #1
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Covid-19 is Another Reason to Assess your Roofing Insurance


Covid-19 is Another Reason to Assess your Roofing Insurance

It is good business practice to review your insurance at least on an annual basis. With the changes and challenges introduced by Coronavirus, now is also a good time to review your coverage.

Let’s talk about why reviewing your insurance is important.

Why review your insurance?

Your insurance needs change as your business changes. You could be working in a new location that has introduced new risks, for example a coastal project. Your business could have grown with an increase in staff members. Have you bought more equipment, tools or vehicles?

The pandemic has introduced other changes. Some projects have been put on hold or the scope has changed. Others have been abandoned entirely. As a business owner or employer you also have an obligation to keep your staff members safe on site. What does this mean for your insurance?

How could your insurance be impacted by Coronovirus?

The typical coverage that a Roofing company requires includes General Liability, Workers Compensation and property coverage. Examples of the impact the pandemic could have on these policies are as follows:
General Liability
It is expected that there will be a rise in Coronavirus liability claims in the future. Third parties may claim that they contracted the virus due to the negligence of another. It is not yet clear how this will be dealt with by the courts. Liability insurance does include the costs for your legal defense so this coverage is important. It will also assist with a settlement if the courts decide that such a claim is valid.
Workers Compensation
This is mandatory coverage if you have employees. This insurance assists with the medical care costs as well as the loss of income an employee may incur when injured at work. How and if this will relate to COVID-19 cases in the future is still to be seen.
Builder’s Risk Insurance
This is property coverage. It assists with the replacement costs of property, tools, materials and equipment. A policy applies to a particular project and it is tailored for the needs of that project. Some of the characteristics of a Builder’s Risk Policy mean it could be impacted by the pandemic.

Some examples are:
  • It is term insurance and is generally for 3, 6 or 12 months. If a project is delayed it may no longer provide coverage to the end of the project.
  • A policy could have a cessation clause, for example if the project is abandoned. Advising the policy carrier that the project is only delayed is important and some record keeping may be required.
  • The insurable value of a policy should be 100% of the replacement cost of the project at completion. Delays could result in an increase in labour costs. Materials costs could also increase if supply issues develop. This could mean the project is no longer adequately covered.
Now is a Good Time to Review your Insurance

Communication with your agent or carrier is important during the Coronavirus pandemic. Our agents are available to assist you. We will review and tailor an insurance solution so you are protected from financial loss. Call Farmer Brown Insurance on (888) 973-0016.

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Last edited by roofermann; 06-27-2020 at 12:16 PM.
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