Property Development

Directors and officers (D&O) liability

Can protect a developer’s leaders against allegations of error or breach of duty, including shareholder suits and employment complaints.

Can include individual liability (Side A), company reimbursement (Side B) and entity coverage (Side C)

Professional liability (E&O)

Typically pays defense costs and damages when someone alleges that a developer’s advice or work was inaccurate, incomplete or negligent.

Can include professional error, cost of defense and settlements and court awards

Tenant default

Generally reimburses a landlord for rent a tenant fails to pay, plus damage beyond normal wear and the cost of legal action.

Can include unpaid rent, damage to property and legal costs

Delay in start-up (DSU)

May offset extra interest, labor and lost sales or leasing income when a covered event pushes back a development’s completion.

Can include anticipated profit loss, late project start-up and extra project costs

Construction defect

Generally pays to repair flaws in design, workmanship or materials in a finished building, and to defend the resulting claims.

Can include defect repair, legal costs and additional expenses

Builder’s risk

Often protects developments under construction or renovation against fire, storm, theft and vandalism, and some policies add soft costs.

Can include damage to property, theft or malicious damage, fire and natural catastrophe and indirect project costs

Performance bond

Usually compensates a developer when a contractor defaults, whether by not finishing, finishing late or falling short of the standard.

Can include contractor failure, work below standard and late completion

Payment bond

Can help subcontractors and suppliers get paid when the principal contractor runs into financial trouble.

Can include failure to pay, contractor failure and contested sums

These guides describe types of insurance in general. The right coverage depends on your operations and the terms of the policy issued. Pasaca’s featured lines are cyber insurance, directors and officers (D&O) liability insurance, product liability insurance and aviation insurance.