Construction Insurance Requirements in the Bahamas

Insurance is a critical but often overlooked aspect of construction in the Bahamas. Inadequate coverage can leave you exposed to significant financial losses. CONTRACTOR'S ALL RISK (CAR) INSURANCE Also called Construction All Risk, this policy covers the project itself against physical damage during construction. Your contractor should carry this, but verify it is in place before work begins. PUBLIC LIABILITY Covers third-party bodily injury and property damage arising from construction activities. Your contractor must carry this. Minimum recommended: $1 million per occurrence. WORKMAN'S COMPENSATION Covers injuries to workers on your project. Required by law for any business with employees. Your contractor must provide evidence of coverage. STRUCTURAL WARRANTY Some developers and builders offer a structural warranty on completed construction, typically 10 years on structure. Not legally required but highly recommended to insist upon. HOMEOWNER'S INSURANCE Once construction is complete, obtain comprehensive homeowner's insurance before occupation. In the Bahamas, this must include: - Hurricane coverage (wind and storm surge) - Fire and allied perils - Liability HURRICANE COVERAGE NOTE Standard homeowner's policies in the Bahamas include hurricane coverage, but check for sub-limits and deductibles carefully. Hurricane deductibles are often 2-5% of insured value, not a flat amount. KEY BAHAMIAN INSURERS Colina Insurance, Insurance Management, RoyalStar, AssureCare, Bahamas First.