During the construction process, your company needs adequate insurance protection to protect you from unexpected events that result in damage. Builders risk policies mitigate risks that may occur while a project is underway, safeguarding your business from possible financial loss.
What Does This Policy Cover?
This kind of coverage protects you against potential claims associated with damages during a construction project. A standard policy covers the project structures and on-site equipment, tools, materials and supplies. It also pays for expenses such as lost sales, additional interest or rental fees when delays occur. Covered events may include:
This specialized insurance is for commercial or residential projects. The policy is only active while buildings are under construction or renovation. Comprehensive coverage may include temporary structures like scaffolding or fencing, but you often require additional extensions for these items.
Do You Need Builders Risk Insurance?
The general contractor or property owner typically purchases this type of plan. You should include anyone with a financial interest in the project on the policy, such as:
- Property owners
Properties that are under construction have unique risks. Weather disasters, vandalism and other difficulties may cause damage to buildings before they are finished. Builders risk insurance helps you cover the costs associated with unexpected events during the construction process.