The facts
Fred, a builder working for AP20 Construction, had various appliances delivered late on Friday afternoon to the jobsite of a new home build project he was working on that was 95% complete. A project manager on site at the time of delivery decided to store the appliances in the garage until they could be installed on the following Monday.
On Monday morning, a subcontractor working on the project arrived at the jobsite to find that the appliances had been stolen from the garage. The project manager had left the garage unlocked and nobody had checked the jobsite over the weekend.
The result
Unfortunately, the builders risk coverage for the project had been written in the owner's name and the policy did not include the interests of the builder and subcontractors. Furthermore, the policy excluded coverage for theft of building materials not attached to the structure. By following basic risk management principles, this loss would have been covered if adequate coverage was placed when the project started.
Risk factors
Risk factor #1
Implementing and maintaining robust jobsite security measures is vital in preventing theft. Ensure important documents and materials are safe and secure before leaving the jobsite.
Risk factor #2
Always carefully check policy terms and conditions with your clients and ensure there are no gaps in coverage. Theft is one of the most common builders risk related claims.
