Does Your Contractors Insurance Cover Weather-related Losses?

Spring is a season of renewal, but it also brings unpredictable weather that can wreak havoc on construction projects. Heavy rains, strong winds and sudden hailstorms can cause significant delays and damage, leading to increased costs and extended timelines. For contractors, understanding whether their insurance covers weather-related losses can be crucial to mitigating these risks.

Impact of Spring Storms on Construction Projects

Spring storms can disrupt construction schedules in various ways. Heavy rainfall can lead to flooding, making sites inaccessible and damaging materials and equipment. High winds can topple scaffolding and other structures, posing safety hazards and causing property damage. Hailstorms can destroy exposed materials, leading to costly replacements. These disruptions delay project completion and increase the risk of accidents and injuries on-site.

Insurance Coverage for Weather-related Losses

Contractors typically rely on the following types of insurance to financially protect against weather-related losses:

• Builders risk insurance can be essential, as it can help financially cover buildings and structures under construction, as well as materials and equipment at the site. This policy can financially protect against physical loss or damage caused by extreme weather events like floods, high winds and hail. It’s important to review the policy details to verify that these risks are explicitly covered and to consider adding endorsements to fill any coverage gaps.
• General liability insurance can help financially safeguard contractors from claims of bodily injury, property damage or personal injury during operations. This coverage can include accidents and injuries related to severe weather conditions. Contractors should verify that their policy addresses specific weather-related hazards that could impact their activities.
• Professional liability insurance, or errors and omissions insurance, is crucial for contractors involved in design and engineering services. It can help financially protect against claims alleging negligence, errors, or omissions in professional work, which could exacerbate damage caused by extreme weather events.

Learn More

For contractors insurance near you, contact Ambassador Insurance Group.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.