Does Contractor Insurance Cover Covid-19?



Contractors across the US are asking, Does my insurance cover Covid-19? The effects of the COVID-19 pandemic have been felt globally. The outbreak has caused the slowing down or shut-down of construction sites across the world. This has led to significant losses for contractors in the industry.

Some insurance policies have proved to cater for such associated risks and losses.  While others have led contractors to bear the costs themselves. Unless clearly defined in your policy, coverage for the COVID-19 outbreak may be ambiguous or non-existent.

You need clarification during this time in order to reduce your risks and losses.  Let’s take a look at some points to consider with your construction business during a pandemic such as COVID-19.

  • Loss of Profits

It is important to check if your insurance policy covers any loss of profits to you, the contractor, as a result of the suspension of works on construction sites. Your client may not cover these costs as stipulated in the terms of your contract. You need to confirm with your insurance agent if these costs will be covered.

  • Time-Related Costs

Time-related costs will have a great impact on your overall construction costs. These can include costs related to hired equipment, loss of productivity and increased material storage.

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  • Costs for Contractual and Legal Claims

Contractual and legal claims for extensions of time, and compensation for related costs will occur after the pandemic. Making sure that your insurance policy will cover any potential costs for legal defense or litigation will spare your business from any losses. These may include attorney fees, witness fees and court expenses.

  • Costs for Delays in Material Delivery

Delays in delivery of materials as a result of suppliers shutting down their factories or slowing down works, will have an impact upon your sites. Import restrictions will also affect any supplies that were in transit.

  • Costs for Delays in Obtaining Skilled Workers

It will be a challenge to get adequate skilled workers. The quarantine and social distancing measures have resulted in workers being unable to show up for work as a safety precaution.

  • Professional Liability Costs

Accidents, mistakes, and professional negligence can occur during this period, leading to property damage and personal injury. New legal measures introduced as a result of the pandemic can lead to changes in work methods, processes, and resource-leveling. Such measures can increase the chance of mistakes and accidents during the transition period. The right insurance coverage will lessen the risk of financial loss to your business, in the event of a claim.

  • Coverage for Unsatisfactory Quality 

With limited resources available, there are risks your work could result in unsatisfactory quality. As a contractor, you will attempt to optimize the available resources. But, insurance policies covering such risks will be critical to you during this time.

So, does your contractor insurance cover Covid-19?

You cannot underestimate the benefits of insurance coverage to lessen risks. Take advantage of this opportunity to review your insurance coverage. Analyze the terms of your policies and what they cover. Talk to an insurance agent at Contractors Liability who will be able to clearly define and discuss exactly what costs will be covered during the COVID-19 pandemic.

Does your insurance cover Covid 19? Ask us, we will assess and assist. Call 888 676 0923 today

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