A construction project can be a complex and challenging endeavor with many uncertainties. From start to completion, numerous risks can jeopardize the project’s success. To mitigate these potential losses, builders risk insurance can play a pivotal role.
What Is Builders Risk Insurance and Why Is It Important for Construction Projects?
Builders risk insurance is a specific type of property insurance that helps cover buildings under construction. It can typically be tailored to your needs because each construction business and project has unique risks. This type of insurance is essential for covering construction projects. Without it, your business would have to pay for costly incidents out of pocket, which could completely derail the project. It could also affect your company’s reputation and ability to book future projects.
What Does Builders Risk Insurance Typically Cover?
Builders risk insurance can help protect construction projects financially from expenses related to property damage at the site caused by the following:
Tailored extensions can be added for the following:
- Construction documents
- Temporary structures
- Costs associated with construction delays
- Debris removal and disposal in the event of a loss
- Pollutant cleanup
How Does Builders Risk Insurance Difference From Other Types of Construction Insurance?
Builders risk insurance differs from other types of construction insurance in terms of the specific risks and coverage it provides. Construction businesses and contractors may also want to have the following types of coverage:
- General liability coverage may help protect against liability for third-party property damage, third-party bodily injury, copyright infringement and other advertising injuries, and completed construction or installation damages.
- Professional liability coverage may help protect the construction business from lawsuits over errors and omissions.
- Commercial auto coverage may help cover medical bills, legal fees and property damage if a company-owned vehicle is involved in an accident.
- Loss of income coverage may help cover losses within policy limits resulting from business interruption due to a covered event.
- Workers’ compensation coverage may help cover medical expenses and lost employee wages if they suffer a work-related injury or illness.
Contact Joe Bill Mettauer Insurance to discuss your insurance needs and determine if builders insurance applies to your business. We can help ensure that your business has a robust insurance policy to cover unexpected incidents that may come your way.