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Why is Insurance in Construction Important in NYC?

Insurance in Construction CooperBuild 1

After the onslaught of the worldwide Covid-19, New York City has recorded a still steady increase in construction investment despite a reasonable decline of the economy during the massive lockdowns and pandemic crisis. The construction spending of the city is recorded at an estimated $86 Billion according to the New York Construction Outlook. This indicates a positive importance of the construction industry to New York City.

As it is, the uncertainty brought about by the pandemic has spotlighted the importance of insurance coverage and protection against damages to property and assets. Reputable contractors lookout for their clients by providing them with insurance against certain liabilities that are covered under a general liability coverage but clients should also understand their role and responsibility in getting insured as an additional layer of protection during and after construction.

Construction projects carry a level of risk that high-end general contractors manage through skill and careful planning. According to the Federal Bureau of Labor Statistics, the construction workforce in New York City only makes up about 5% of the population, but they account for around 27% of work-related injuries. Several risks that derail a project are due to unforeseen circumstances in the field such as these accidents. A contractor must be properly insured not only for his benefit and his employees but also for his client’s personal interest as a homeowner and business proprietor especially with New York’s Labor Laws that impose strict liability against the contractor and the owner. General Contractors should carry a general liability insurance to protect from expenses caused by such construction mishaps. For a homeowner, it is a good idea to revisit their Homeowners Insurance to necessitate more coverage, and upgrade their policy. Likewise, business owners must validate their corresponding coverage and check if there is a need to update, especially with the inflation in real-estate property.

When starting a construction project, avoid the mistake of hiring a person who is not properly licensed and experienced. Similarly, protect your assets by getting your property insured and getting an insured contractor to do the job for you. Here are a few tips to remember:

  • Have a written contract instead of a verbal agreement even if it is with a long-time associate
  • Screen your contractor. Don’t be scared to ask questions. A reputable contractor assists you in understanding the processes that are involved in a construction.
  • Make sure your contractor is insured and is registered to practice in the city. Research experience and check for reviews if available.
  • Check your property’s insurance as well. Make sure that it is updated. Homeowners insurance, for residential owners, protects one’s home and possessions against damages and liabilities. Ask insurance advice from a professional to know more.

 

New York is unlike many cities in the country. Its unique building construction regulations, which equates to an added layer of expense to the housing market, is further worsened by expensive construction. Safeguard your assets by choosing a properly insured contractor and understanding the role of insurance in your property because a lawsuit is more costly to defend and may result in multi-million dollar settlements. Property owners must know and understand the law to take necessary precautions.

CooperBuild is a registered and licensed high-end residential and commercial contractor in NYC. Let us help you with all your construction needs, contact us for more info or drop by our socials to check out more of our work!

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