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What Kind of Coverage is "Builders Risk"? |
Builders Risk coverage is a form of insurance applicable to the construction of a building or dwelling, from beginning until completion, including coverage on the materials and equipment - even tools - at the site during the various stages of completion of the structure. There are various forms of the coverage, including completed value or reporting forms, where the insured may have various projects pending.
Most people think of the coverage as a commercial property form, like fire insurance, that covers a named peril or all risk basis, the structure and other property. "Not so!" ruled an Arizona Appellate Court. It is not fire insurance! So, what is it? |
The claim involved construction of dorms at the Arizona State University. The contractor had a builders risk form of insurance, and in it were endorsed warranties that the contractor would reduce the hazards by providing an adequate number of fire extinguishers, conduct fire watches during welding processes, inspect frequently to be sure there were no smoldering fires, and generally meet OSHA requirements. A subcontractor who was using a welding torch set off a fire that caused over $2 million in damages. The insured made a claim under the builders risk policy, and the insurer denied it on the basis that the insured had not complied with the endorsed warranties.
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| But that's not consistent with the Arizona standard fire policy, the insured argued. It isn't fire insurance, the Court responded. It is inland marine insurance, and just like ocean marine insurance, warranties are intended to be met. The insured failed to comply, so the coverage is inapplicable. One commentator compared it to insurance on an ocean-going vessel, where the implied warranty is that the vessel is seaworthy. If it is not, it is not insurable. |
Whether it is fire insurance or an inland marine claim that arrives in the claims department, an adjuster who has attended a Crawford Educational Services class or an online course will be prepared to assess not only the damage, but more importantly the coverage and liability issues - including those with endorsed warranties. For complete course listings, visit our website.
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Contact Us Today!
404.300.1526 | |
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January 12-14
This course combines an online pre-study and a three (3) day classroom, instructor led, skill application lab. The course is not state specific, but rather focuses on the general concepts of handling workers' compensation claims. Upon completion of training, the entry level workers' compensation adjuster or Risk Management Personnel will have been exposed to the knowledge and skill sets required to handle workers' compensation claims, while under supervision. |
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Intermediate Property
January 12-23
The Intermediate Property class is a two-week course designed to elevate the skill sets of the basic property adjuster who has experience in homeowners claims and now needs to move up to handling commercial losses.
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At Crawford Educational Services, you'll get hands-on training from our expert instructors. We offer classes in property, casualty, and workers' compensation in our classroom facility in Atlanta, as well as customized programs at your location. | |
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Take Note! is a marketing tool of Crawford Educational Services, the training division of Crawford & Company. The contents and any referenced external materials are not intended to and should not be construed as legal or other professional advice, nor is such information intended to be nor should it be used as a substitute for legal or professional counsel. These materials merely convey general information about claims and claims related situations often encountered by claims professionals. While an effort is made to be accurate, Crawford & Company does not represent, warrant, promise, or imply that this information is current, accurate, thorough, or adequate.
An Equal Opportunity Employer
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