Liability insurance is the most important component of a builder’s insurance program. The general liability policy is intended to cover a wide range of third party claims. These involve both “premises-operations” exposures, such as a slip and fall at the builder’s offices or model home; or a job site injury to a worker, as well as “products-completed operations” exposures, such as construction defect claims.
Builders should approach risk management as more than buying insurance. Non- insurance risk management strategies – designed to avoid, minimize and/or shift liabilities – must become a core part of every builder’s company philosophy and operational practices.
Implementing loss control strategies increasingly will be a prerequisite for builders to qualify for adequate liability insurance, both in the current market and in the future.
For BIAI coverage, each policyholder must implement and maintain an aggressive loss control program. Our “Management of Risk and Loss Control Program” outlines the minimum standards required by BIAI.
In addition, each policyholder is required to appoint a “Safety Representative” familiar with all aspects of the operation to initiate and police the loss control program. This representative must possess sufficient knowledge of the operation to enable him/her to identify deficiencies and be empowered with the authority to carry out corrective action.
The BIAI loss control professional will conduct a minimum of one site visit and loss control program review with a principal of the building firm and the safety representative. In addition, a principal of the building firm must attend a minimum of one loss control and prevention-training seminar held by BIAI, a RRC during the policy term.
General liability insurance through Builders Insurance Association Inc., A Risk Retention Group (BIAI) is a membership benefit available only to builders who are members of a local home builders association. There are 18 associations throughout the Commonwealth. Click here for a listing.
For more information about general liability insurance, read the attached report from the National Association of Home Builders, The Liability Crisis for Builders; Reasons and Responses. To read and print this PDF file, you must have the most recent version of Adobe Acrobat Reader software installed on your computer. You can download it free of charge from the Adobe home page.
