Real Estate Development Property

What Does GL Code 47051 Cover?

ISO GL class code 47051 covers real estate development properties, encompassing the general liability exposures associated with the construction, renovation, and sale of commercial or residential properties. This code classifies operations where the developer retains ownership during construction and is responsible for the overall project, including hiring contractors and managing the development process.

Who Uses This Class Code?

This code is primarily used by real estate developers, property development companies, land developers, and speculative builders who undertake projects ranging from single-family homes to large-scale commercial complexes. It applies to entities that manage the entire development lifecycle, from land acquisition and planning to construction oversight and final sale.

Common GL Claims for This Class

Common claims include bodily injury to third parties on development sites, property damage to adjacent structures during construction, and claims arising from construction defects after the property has been sold.

Coverage Tips for Code 47051

• Ensure your policy includes coverage for ongoing and completed operations, as claims can arise long after a project is finished.
• Verify that all subcontractors carry their own General Liability insurance, name you as an additional insured, and provide current certificates of insurance.
• Be aware of Florida’s stringent construction defect laws and ensure your policy adequately addresses potential liabilities arising from faulty workmanship or materials.
• Maintain accurate records of all gross receipts and project costs, as these are often the basis for premium audits and can impact your final insurance costs.