Construction Project Challenges

Construction projects all over the world are facing delays, shut-downs and other challenges directly related to COVID-19. A key question is “how will builders risk insurance respond?”


An update on Builders Risk Insurance


Provincial and Federal governments continue to revise “essential service” parameters which impacts how construction projects are planned and managed. Depending on the specific policy contract in place, Course of Construction policies can differ from each insurer. This is particularly evident with the varying exclusions that many insurers have as it relates to partial or complete cessation of work or interruption of construction.


It is important that you review your policy, particularly the cessation and notification clauses with your insurance professional. Work stoppages can be construed as a material change in risk, in which there is a duty to notify the insurer.


As for Delay of Start-up, this optional coverage, if purchased, is very similar to Business Interruption under a property policy. Like Business Interruption, it must be triggered by a physical loss or damage from an insured peril. In most cases the shutdowns have not been due to a physical loss. For further clarity on this, please reach out to your Account Executive.


How can I learn more?


We are working closely with all our clients and insurance company partners to understand how coverage is impacted during these unprecedented times. We will continue to advocate on behalf of our clients and will share information we feel is relevant and timely.


Click here to view our whitepaper: Project and Construction Challenges Due to COVID-19