What are Builder’s Risk benefits? Did you know that the cost of rebuilding the Notre Dame Cathedral in France is predicted to cost upward of one billion dollars? Were you aware the construction company working inside the building didn’t have a Builder’s Risk benefits policy on the 857-year-old building? And therefore, technically, the entire country of France is responsible for the bill? This is a contractor’s worst nightmare; a building that goes up in flames with no risk policy to offset the cost of any potential disasters.
Builder’s Risk Insurance is designed to protect your construction projects from start to finish through a variety of potential outcomes. Not only do Builder’s Risk benefits cover costs such as labor and materials, your Builder’s risk insurance policy also covers some more undervalued costs.
In this article we’re going to take a look at 3 of the best things about Builder’s Risk Insurance to show how having this policy will benefit you.
One of the most important benefits your Builder’s Risk insurance policy will cover is debris removal. Construction accidents are common, from falling ladders to falling structures – but workers comp and injuries may be just the beginning of your financial woes.
The cost of cleaning up debris after an accident can be enormous and may make or break the future of your unprotected projects. Builder’s Risk benefits can help offset these costs.
Take fires. If you’re contracting on a condo that goes up in flames, the rebuilding costs may seem to be of immediate importance. However, before rebuilding can begin, the burnt-down timbres will first need to be cleared. A good Builder’s Risk benefits policy will cover this process.
Large projects may bring the big money to your pockets, but they also introduce a big risk; evolving building codes. In the time it takes to go from foundation to finish, related building codes and ordinances may undergo several changes.
In the event of building code changes, the only recourse is to redesign and rebuild appropriately, which can be a costly undertaking. This is where your Builder’s Risk insurance policy comes in handy.
Airports are a great example. For instance, the O’Hare Airport Construction Project began in 2001 and was re-upped again in 2018. With an estimated end date of 2028, that brings the project to 27 years. That’s a lot of building code changes.
Contamination is a major concern for construction sites, from paints to glues to fuels – even unset cement. If rain or a construction accident causes these chemicals to be released into the air or groundwater, the cleanup costs can sink an unprotected project.
One of the most common ways a construction site can contaminate the surrounding area is through atmospheric and groundwater contamination during a fire. If a building goes up in smoke and the ash chokes out the air and sky, the construction company is responsible for cleaning up the damage.
Potential damages include cleaning the groundwater affected by ash runoff, as well as filtering and sanitizing the surrounding soil. Your Builder’s Risk benefits can cover the costs of these procedures so debris removal can begin and construction can continue.
As this article has shown, there are many risks associated with your building contract.
Regardless of the scope and outcome of your project, you have seen that having a Builder’s Risk policy is always a good preventative measure in the event that the worst-case scenario becomes reality. Call us today for a quick 5 minute quote, and get you and your business covered before you embark upon your next construction project. Call Builder’s Risk 887 960 0221. We can help.