Real estate developers work with a diverse range of people in a variety of circumstances. Each project is unique and comes with its own insurance requirements. Getting the right insurance is a vital part of any job, as inadequate coverage can lead to serious legal and financial consequences.
Types of Coverage
The most common type of insurance carried by most developers is a commercial general liability policy. Although this offers some protection, it does not cover every situation. Developers should research the available types of insurance before starting a project. This can reduce the chances of something being missed and resulting in costly issues down the line.
The basic types of insurance for real estate developers are:
- Commercial general liability
- Professional liability
- Construction policy
- Blanket limit
- Business interruption
Not every type of insurance is necessary for each project. However, even if the real estate developer believes that certain types of insurance will not be needed, it is a good idea to have multiple professionals evaluate the site to ensure nothing is missed. Properly assessing the risk can reduce the chances of future legal trouble or costly job interruptions.
While researching the available insurance types may take time, the protection of the project, property and everyone involved makes the effort worthwhile.