“When is the right time to pitch premises liability with builders risk insurance?”
Given how unique construction projects, property ownership and the parties involved can be, that’s not an uncommon question.
First, let’s define premises liability. The premises liability insurance product available through US Assure was designed to complement the Builders Risk Plan insured by Zurich for property owners. This standalone premises liability product will pay direct damage for medical aid to an injured party that arises out of owner negligence (and defend the insured should a lawsuit arise) when undergoing new construction or remodeling at a vacant property or piece of land.
Working in tandem with a separate course of construction policy, this ensures clients are protected both against risks like fire and vandalism, as well as legal action resulting from a slip and fall injury to visitors (or even trespassers) on their vacant property during new construction or remodeling.
While all of that sounds great on paper, pitching it to clients in your everyday practice may not feel so familiar…yet. Picture yourself selling premises liability and builders risk insurance as a package deal with the help of these three scenarios.
Nina and Caleb sold their home and are planning to build a new single-family house on property they recently purchased. They know they will need builders risk insurance for the course of construction and understand liability insurance won’t extend to the new location. They reach out to an insurance agent to see what their coverage options are.
This is a great opportunity! When clients are clearly already in the market for a builders risk insurance policy, suggesting the premises liability policy along with it becomes that much easier. When you secure what would likely be a one-shot residential new construction policy for Nina and Caleb, you can remind them that if there’s any chance that something could go wrong on property and result in the injury of any visitors (invited or otherwise), they could reduce financial impact from potential lawsuits if they purchased premises liability as well.
Marie is excited to transition from her home catering business into opening her first bakery. You already secured builders risk insurance for the commercial renovation project. However, Marie has no interest in a premises liability policy because she believes the threat of someone taking legal action against her is unlikely.
This is a common misconception. Many clients are simply unaware of how easy it can be for a construction site visitor to have a slip and fall accident (and the resulting medical bills can certainly add up). For instance, imagine Marie so excited to show off her new business that she invited friends to the jobsite for a sneak peek at the space. As they toured the facility, one of her friends slipped on a loose step and fell, injuring her back and fracturing her wrist as she tried to catch herself.
According to the National Floor Safety Institute, slip-and-fall accidents account for over one million hospital emergency room visits, representing 12 percent of total falls. Premises liability can help to protect Marie from having to pay out of pocket for these ensuing medical bills.
Jason wants to add a new story to a fixer upper home he inherited, and needs a bank loan to finance the remodel. But in order to qualify for the loan, the bank requested him to provide proof of premises liability coverage first.
This is a great opportunity to also educate Jason about the benefits of a home remodeling builders risk policy. Not sure how to get him on the same page with you about a builders risk policy for his remodel? Download our guide, Why Homeowners Need Home Remodeling Insurance.
When it comes to protecting your clients, you have the advantage of knowing exactly what they have to lose without proper coverage. And once you’re comfortable discussing clients’ future construction plans and the potential risks awaiting their projects, you’ll be one step closer to giving you both peace of mind that they’re protected.
Ready to have the coverage conversation with your clients? Head confidently into your next prospect meeting with a consumer-facing sell sheet that can be customized with your logo and contact information.
This is intended as a general description of certain types of insurance and services available to qualified customers. Your policy is the contract that specifically and fully describes your coverage. The description of the policy provisions gives a broad overview of coverages and does not revise or amend the policy.
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