Homeowners and landlords represent a large portion of clients who need and use contractors. Most construction companies will likely deal with a lot of anxiety from customers over different concerns and emotional issues stemming from the work they perform on many of the smaller jobs they take on, such as home repairs and apartment renovations.
Because their clients have such a vested interest in the work being performed, any damage or harm coming to the property due to the contractor or the crew (which could simply be due to hiring the wrong person to perform renovations to their property) could result in litigation. With these types of concerns to consider, contractors in the New Mexico area need construction coverage from Daniels Insurance as a way to protect their interests when it comes to dealing with disgruntled clients.
Construction insurance is an essential tool
Contractors have a goal of completing a project on time and on budget, however delays and cost overruns can become a point of debate in the event that they end up in the claims process. Most construction contracts place the responsibility to deliver an undamaged and completed project on the contractor. It’s important to understand coverage application for the contractor and its subcontractors, including any rights as additional named insureds. Furthermore, allocation of deductible amounts requires careful review of the contract documents.
Considering that most policies include a duty to mitigate loss, which typically can include some immediate decisions and costs, this collaboration between owner and contractor and an understanding of recovery sources is underscored. In many cases where further loss was not prevented, coverage may well be affected.
A contractor’s responsibilities include completing the work in a timely manner, accurate specification of pricing, including any markups, and clarity around excusable and compensable delays. Contractors and owners alike should be prepared to measure delays and any repair costs, along with expediting expense with transparency regarding causation and an understanding of where such costs may be recoverable.
Daniels Insurance wants all contractors to succeed and in order to do so they’re going to need to be adequately covered for any and all risks related to this dynamic industry.