What is it?
Okay so you have set out your plan for the project, laid out investment and everything is down for work.
Before the project begins there are a lot of activities and procedures that usually take place. Say, preparation, meetings for negotiation purposes, profiling of contractors, awarding tenders to the qualified contractors, designing services and all through to the construction. Well, chances are that these processes might not run as smoothly without any kind hiccups or errors that might haunt you later.
To cater for such errors the Real Estate Development Liability Insurance comes to play.
So what is it really?
This kind of insurance liability is set to cover wrongful acts that might have occurred during the process by contractors or officers working in the project.
Take an example where a contractor allegedly or actually omitted some important aspect of the real estate design or maybe neglected, or even breached duty in the event of the real estate development process. To avoid such risks falling on you, the Real Estate Development Liability Insurance comes to your aid.
What are the benefits?
Most real estate developers take covers that shield them from risks during the real estate development process.
However, these covers taken are usually very general that leave them vulnerable to specific types of risks like for instance in this case wrongful acts.
The Real Estate Development Liability Insurance covers employees, directors and officers involved in the primary stages of the development and insures against wrongful acts of omission, neglect and errors in the critical stages of inception, negotiation and implementation. As result, you as the real estate developer is cushioned against lawsuits or losses that may come up as the result of such wrongful acts.
The cover provides some piece of mind and a clear vision for concentration on issues that really matter and are pivotal to the project’s success. For more information on specific dynamics, real estate developers should consult development liability specialists for a broader view on it. As a cautionary measure, developers could add in this insurance on top of their umbrella insurance covers to cover all risk possibilities.
Generally, it is therefore advisable for real estate developers to take up this insurance cover for a more comfortable real estate development experience. To protect your real estate project from suffering because of other professionals’’ mistakes, it is essential that you shield yourself.
Contact us today for more information about Real Estate Development Liability Insurance.