Contractors are liable for their work in Roseland, New Jersey. Construction law and construction litigation usually go hand in hand. Construction liability insurance provides coverage for operations and premises during and after a job.
Premises-Operations and Completed-Operations insurances make up construction wrap-up insurance for each job. During a construction job, accidents can happen. Premises-Operations insurance covers property damage and injuries during the job. If an accident of any type happens during a job, it is under Prem/Ops.
Completed-Operations insurance covers property damage and injury on the premises after the job. If a contractor fails to fix a leaky roof or cracked foundation, that is under Comp/Ops. A contractor is liable for shoddy craftsmanship for around 12 years after the job under Construction law.
Homes use modular building materials much of the time recently. Using modular construction can complicate construction insurance. Under construction laws, a defect from a construction job is on the contractor, but a modular home reduces labor by up to half. Since modular projects are from a factory, they may not qualify as construction defects under Prem/Ops or Comp/Ops. Modulars may be under product liability instead. Construction jobs are under a blanket insurance during and after the construction.
Large construction companies often use wrap-up insurance on jobs to protect the company and its contractors. The general contractor buys insurance that covers all the contractors on the job. Wrap-up insurance covers the work on the job and reduces the risk of overlapping coverages. Wrap-up insurance covers work on or near the site of the job. Traditional insurance might not cover modular are from a factory.
Some companies are changing insurance language to include modular pieces in a job. If the insurance a construction job uses doesn’t cover a modular, they could have uninsured losses from the job. Contractors are liable for their craftsmanship. Don’t assume traditional wrap-up insurance covers the entire job.