As a member of the construction industry, you must account for many potential incidents that could negatively impact your employees, clients, finances and business prospects. The job sites of projects in progress may be particularly susceptible to certain risks and exposures, making it necessary for you to consider appropriate loss control measures, such as builders risk insurance.
What Is Builders Risk Insurance?
As its name suggests, builders risk insurance is a type of coverage often suitable for parties involved in building or renovating structures. Like many insurance products, these policies establish binding agreements between your company and its insurance carrier, allowing you to file a claim for financial aid following covered losses.
Your policy can typically be customized and tailored to suit your needs, preferences and risk tolerance, but generally should include coverage for the following:
- Buildings, including both new structures and those being renovated
- Temporary structures, such as scaffolding and fences
- Tools, equipment, materials and machinery stored on site
- Important documents, including blueprints, contracts and building specifications
- Business interruption costs, such as additional fees or taxes necessitated due to project delays
What Is the Difference Between Builders Risk Insurance and Contractors All Risk Insurance?
Builders risk insurance is a specialized type of coverage that typically focuses only on covering losses and damages related to the site of a project. For example, burglaries, vandalism and fires that damage a structure or equipment are usually covered. Meanwhile, contractors all risk insurance typically includes coverage for third-party losses occurring on the job site. For instance, if a group of investors is touring a project and someone trips and is injured, contractors all risk insurance may help pay for the resulting medical bills.
How Much Builders Risk Insurance Do I Need?
Your builders risk coverage needs may vary significantly depending on your unique circumstances, financial situation, risk tolerance and project details. As a general rule, you should ensure your coverage limits equal the total completed value of the project at hand. A qualified insurance professional can help you assess your needs and secure suitable coverage.
Get the Right Coverage
At Gray Insurance Group, we pride ourselves on helping construction firms, contractors and other members of the industry secure ideal coverage. Contact us today to learn more about builders risk insurance or to get a personalized quote.
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