What happens to coverage under Contractor Insurance if construction activity ceases for more than 30 days?

When construction activity ceases for more than 30 days, coverage under Contractor Insurance typically ceases. This condition is put in place to manage the risks associated with construction operations, which can be dynamic and often require ongoing activity to mitigate exposure to potential liabilities. When work is halted for an extended period, the insurer may view the risk as significantly altered, leading to the decision to discontinue coverage.

This often aligns with certain terms and conditions found in construction insurance policies that stipulate that continuous operations are necessary to maintain coverage. If the work stops, the activity becomes less predictable, leading to a higher risk of incidents that would not have occurred if operations were ongoing. Thus, the policy will cease, protecting both the insurer and the insured from potential liabilities arising from unmonitored or inactive construction sites.