Home > Glossary

Turnkey Operation

Turnkey Operation

Definition

In the construction industry, the practice by contractors of building on speculation and then selling the completed project to a buyer. Under the provisions of standard liability insurance, such operations can be subject to an alienated premises exclusion that removes coverage in connection with premises sold by the insured. If a contractor has in any way "occupied" a building it has constructed on speculation before selling it—for example, displaying it as a model—then coverage should be modified to preserve coverage for this turnkey operation exposure.

Related Products

Navigation

Social Media

User ID: Subscriber Status:Free