What is Builders Risk?
There are several different types of insurance coverage that a contractor or construction company needs to ensure their assets and business is protected. One type of insurance that is typically required for businesses working in the construction industry is Builders Risk Insurance. This coverage protects the property where construction is underway. During construction, there are risks that could prevent a build from going forward, or stop it altogether. To mitigate these risks, contractions can get an insurance policy that covers the cost of their project and the work completed on site.
Why Do Contractors Need Course of Construction Insurance?
As with any insurance, it can only help you protect your assets if you have it. Builders Risk Insurance is needed when contractors have off-site projects they are responsible for completing. To protect the assets and operation of the business, contracts opt to get Builders Risk Insurance to cover the actual projects they are working on and the property that surrounds it.
What Things Should You Consider When Applying for Builders Risk Insurance?
There are some things to consider when asking for a quote or inquiring about insurance options for contractors and construction companies. A skilled and knowledgeable insurance company, like ours, will be able to provide you with all of the information you need to make sure your business is covered. We’ll walk you through the process and help you determine the best course of action for your construction company. You’ll need to consider what properties need coverage. How much coverage you will need and take into consideration anyone else involved in the development of the project. Be prepared for time delays and circumstances that could put your construction project on hold, costing your valuable time and money.
Each of these items is explained in further detail below.
What Property to Cover?
This is an important question when seeking insurance: how much coverage do you need and what resources need to be included? Many construction companies work on residential and commercial properties, and it’s important to understand that coverage is limited to the exterior of the building in some cases, especially for commercial renovations. You have the option to add in additional covered for equipment and the types of risks you want to be covered in your Builders Risk Insurance policy.
Who Should Be Insured Under Your Builders Risk Policy?
When applying for insurance, you need to consider who is going to be covered under your policy. This goes well beyond yourself and your employees. In fact, this type of policy goes so far as to be able to include coverage for a delay associated with the delivery of materials. Not all Builders Risk policies will cover this, but it is an option in some states.
What About Time Delays?
Delays are inevitable in life. Things don’t always go the way we plan, and when it comes to building structures, office buildings, and homes, there are some moving pieces to make sure that project goes off without delay. In the event of a delay, however, some insurance policies can include time element coverage so that the builder doesn’t assume the costs of delays, extra expenses due to delays and delays due to disasters or vandalism. It will be important to determine whether or not others, such as subcontractors and professionals involved on the worksite, will be covered for these delays as well.
Get Insurance Before Construction Begins
It is important that contractors seek the expert advice of qualified and knowledgeable insurance agents regarding business operations and Builders Risk coverage before any construction begins. Understanding the limitations to your insurance policy can help reduce misunderstanding and concern for construction companies from the start. To protect your company to the full extent, always seek comprehensive insurance coverage before beginning any project.
We are Specialists in Builders Risk Insurance
If you are a new or existing construction or contracting company and want more information about your protection and coverage options, contact us to discuss how we can help you get everything in place to protect you and your company. Don’t let unforeseen circumstances or delays create financial issues for your business. We’ll work with you to determine the best California contractor’s insurance for your needs.