The Raza Property Group, Inc., which is the construction management arm of Raza Properties, (To learn more visit: http://razaproperties.net/about/) has a comprehensive General Contractor and liability policy that goes to great lengths to protect the property owner and laborers in more ways than they could imagine.
Recently, we have seen disappointing and unproductive backlash against investors and developers, which makes this kind of coverage more important than ever.
To help us understand more about what protection is needed and the specifics that surround this tricky area of construction and development we spoke with Sean Friedland, who is Executive Director at The Fisher Golkin Group, LLC.
He explains that:
“General Liability is a requirement for all licensed contractors in most states and especially Philadelphia County. But like insurance not all contractors are alike. Insurance Classifies Contractors as those doing the work (Artisan) and those supervising or hiring the artisans (General Contractors).”
An Artisan contractor is defined as a skilled craftsman in a specific field, i.e. Carpenter, Painter, Plumber, Electrician. With each classification, it can be broken down even more. Artisan contractors with General Liability policies have coverage specifically for their area of expertise.
Example: If a carpenter remodels a kitchen and replaces all the pipes and gas lines he is no longer a carpenter he has acted as a plumber and his policy may exclude work not considered as incidental, changing a facet, reinstalling a dishwasher.
Many in the construction industry classify themselves as artisan for insurance purposes because the costs are less. Companies like Raza Property Group are properly insured since they may do work as the General Contractor. However, plumbing and electrical are sub-contracted to those who are experts.
General Contractors are intended to provide project management. A general contractor submits for bids, hires the labor, oversees the labor, and is ultimately responsible to deliver on time.
A General Contractor doing the job correctly hires sub-contractors. I have come across many contractors seeking insurance that are listed as something other then what they are. Clients can rest easy knowing a GC should be able to provide a Certificate of Insurance with the specific wording of what the Contractor is insured for.
Every business looks to cut costs where they can, but the cost of doing business where something could ruin the life or lives of others can’t be sacrificed. Penny-wise and dollar foolish will put you out of business.
Raza Properties follows a specific path to insure all their properties and projects. These include, liability for a vacant lot, A builders’ risk policy to protect the owners of the project from theft and delays, and general liability on their business which insures all work is covered when it is being done and even years later.
The Fisher Golkin Group is proud to only provide policies to clients interested in protecting the future of their business and the clients they serve. We are proud partners of Raza Property Group and all their projects.
Many companies fulfill this requirement by finding the most affordable policy available to their local agent. In my experience many agents go to what is available.”