5 insurance must-haves for property developers

Building success as a property developer is often about balancing the amazing possibilities of a new project with the inherent risks. And mitigating those risks starts with a proactive assessment of your insurance solutions.

While standard Contractors All Risk Insurance provides substantial cover, there are a few optional add-ons that could make your risk management solutions more watertight.

1. Removal of Debris Cover

You may have done your best to insure everything and everyone within the construction site. But what happens if employees can’t gain access to the site?

If water or other debris is blocking the entrance, Removal of Debris Cover will ensure you don’t have to pay out-of-pocket for the clearance of the debris. Likewise, it will help you to restore the working conditions within the site.

2. Surrounding Property Cover

Surrounding Property Cover is beneficial if you’re renovating an existing building, rather than building from scratch. It covers property that’s managed by you as the contractor, but that isn’t part of the new construction. So, it’s typically concerning property that’s on the construction site, or just next to it.

It’s a common misconception that existing property insurance will automatically cover existing buildings. But this is not necessarily the case. That’s why it’s important to add Surrounding Property Cover to your insurance when embarking on a property extension.

3. Spreading of Fire Cover

Building the right insurance solution is not just about mitigating all probable risks. It’s about mitigating all possible risks. While fire starting on your construction site may not be a daily concern, if it does occur, it’s best to be prepared.

If a fire arises directly from the actions of the construction works, Spreading of Fire Cover provides insurance against legal liability caused by the fire spreading.

4. Legal Defence Costs Cover

Property development projects can span over months or even years. And in that time, you’ll be working with numerous directors, partners, and employees. It stands to reason that someone may possibly incur some sort of professional liability along the way.

Legal Defence Costs Insurance will cover the legal costs incurred as a result of any criminal action being brought against someone under your employment. This could potentially save you thousands of Rands when solving contractual disputes with clients, subcontractors or suppliers.

5. Underground Services Cover

Underground Services Cover is a must-have for any project that involves excavation. It’ll help with the costs of accidental damage to existing underground services, such as cables, pipes and conduits.

So, if an employee accidentally bursts a pipe, you won’t have to stress about the costs of repairing the damage.

Are you ready to assess whether your Contractors All Risk Insurance meets your unique business needs? OUTsurance offers tailor-made cover including all 5 of the must-have add-ons, as well as Goods in Transit Cover, Off-site Storage Cover and more.

To set up an appointment with an OUTsurance Business Broker, click here to fill in your details on the Estate Living contact form, and a dedicated OUTsurance Business Broker will contact you.

OUTsurance and OUTsurance Life are licensed insurer and FSP. Ts & Cs apply. The OUTbonus is a standard product feature, paid after three claim-free years and premium dependent. Source: Internal data for the 2021 calendar year.