We’re opening up a new location and will be leasing new office space. This space was previously used as a medical office, but we will be doing a fit out over the next four months, do we need to get insurance before we officially occupy?
You should first turn to the building owner/landlord to find out who is responsible for this construction and the material cost. They should be able to explain this to you or your lease agreement will also stipulate this. If this is an expense you are taking on yourself and you are in charge of paying for the fit out along with hiring a contractor, then you should consider purchasing a Builders Risk policy.
This covers building material in the course of construction. …You may think that the contractor would be responsible for this, but this is typically not the case. If there is a fire and there is total loss, you probably will not be able to recoup the cost of building material from the contractor. In most cases Builders Risk coverage can be endorsed on to your current BOP or Property policy.
The policy will insure your property for the duration of the project, at which point, you would then need to convert the Building Risk policy into a traditional Property coverage. In some cases, you may be asked to secure a stand-alone Builders Risk policy if this coverage cannot be added to your existing BOP or Property policy.
The underwriting information for this is typically captured in a short one to two page application, and could be completed with the assistance of the landlord and the contractor.
MPL Risk is a licensed Property & Casualty insurance brokerage firm conducting business in multiple states. We specialize in the healthcare industry and help clients find the right coverage for their business at competitive prices. Visit us at www.MPLRisk.com or contact us at 267-888-4790
