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Part 4 of The Industry Risk Series: Smart Insurance Moves for Today's Business Owners

  • jboynton96
  • 1 day ago
  • 2 min read
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Real Estate Developers: Don’t Break Ground Without These 3 Insurance Protections


Real estate development is full of moving parts—timelines, contractors, budgets, permits, lenders, and city inspectors. But amid the hustle, one crucial component often gets overlooked: insurance strategy.


Without the right protections in place, one unexpected delay or legal issue can wipe out your profit margin—or stall your project indefinitely.


At Coastline Risk, we work with developers and commercial investors to reduce exposure and protect every phase of a project—from pre-construction to lease-up. If you're building or rehabbing property, these are the three must-have coverages you can't afford to skip.


🏗️ 1. Builder’s Risk Insurance


Protect the project itself.


Builder’s risk is essential for covering the structure under construction, as well as materials, supplies, and equipment on site. Fires, theft, vandalism, or severe weather can easily derail your timeline and drain your capital.


Real-World Risk:


A developer breaks ground on a 12-unit multifamily project. Two months in, a windstorm damages framing and stored materials. Without builder’s risk, they face $100,000+ in uninsured losses—plus weeks of delay.


💡 Bonus tip: Make sure your policy includes soft cost coverage to help recoup lost rental income, interest, and permitting fees during delays.


2. General Liability Insurance


Protect your business from third-party claims.


If a subcontractor is injured or a neighboring business claims property damage due to your site activity, you could be on the hook—even if you're not directly at fault.


Real-World Risk:


A pedestrian trips over unsecured fencing near a downtown renovation project and sues the developer. General liability helps cover legal fees, medical costs, and settlements.


💡 Not all general liability policies are created equal. Work with a broker who understands how to tailor coverage to construction risks.


3. Errors & Omissions / Professional Liability


Protect your decisions and designs.


If you're involved in site planning, code interpretation, or project management, you may be liable for errors that cause financial loss—even if you subcontract the work.


Real-World Risk:


A developer misinterprets zoning regulations, resulting in a stop-work order mid-construction. The delay leads to lender penalties and lost investor confidence. E&O coverage helps defend against claims and cover costs related to professional oversights.


💡 Lenders increasingly require professional liability policies before funding is released—especially for mixed-use and complex builds.


How Coastline Risk Supports Real Estate Developers


We don’t just place policies—we build custom coverage portfolios that align with your project’s scope, budget, and goals. Coastline Risk brings:


  • Experience working with builders, investors, and property developers across asset classes

  • Access to top carriers for builder’s risk, GL, and professional liability

  • Help navigating contractual insurance requirements, COI management, and wrap-up policies

  • Ongoing support to adapt coverage as your project evolves


Insurance isn’t the flashiest part of development—but it might be the most important. Before you break ground, make sure your foundation includes risk protection.


🏢 Build with confidence. Coastline Risk is on your team from the first permit to the final walk-through.




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Contact Us Today: (617) 500-1824. / info@coastlinerisk.com


Protect your business, your team, and your projects with Coastline Risk. We're here to help you navigate the complexities of the insurance industry and secure the coverage you need to succeed. 


Learn more At Coastlinerisk.com




 
 
 

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