Course of Construction Insurance is the best way to protect your building project. Construction is a risky business. It is necessary to minimize risks but it is not possible to eliminate them. There are too many unknowns and things occur over which you have no control. This is where Course of Construction (Builder’s Risk) Insurance plays a key part.
Let’s talk briefly about what this insurance is, and 3 of the reasons that builders love it:
This insurance is also known as Builder’s Risk Insurance. Both of the names are helpful descriptors. It is specialized property coverage that covers a project in the course of building. It has a fixed term that commences when building starts. The policy also has a termination date which is aligned to completion. It provides coverage for many of the risks that are common to building projects.
This coverage is not mandatory but many builders choose to make the investment. 3 of the reasons why are:
Fire, theft and vandalism are common occurrences on building projects. More than 6000 fires take place on construction sites every year. Up to $1 billion worth of tools, equipment and material is stolen every year. Vandals frequently damage equipment and the building in progress. Arson accounts for up to a third of property damage by fire.
These events are common inclusions in a Course of Construction policy. It is reassuring to know that when they do occur you have the means to replace and repair as needed. Without insurance your profits can be greatly eroded by a loss event. In some instances contractors do not recover from these financial losses.
A Builder’s Risk policy can give coverage to all the participants in a project. This can include the owner, contractor, sub-contractors, architects, engineers, and lenders. All parties that have a financial interest in the project can be included.
If something happens on the project that is covered by the policy, the insurer pays out to the lien holder. Money can then be drawn from there by the impacted party to address the loss.
Course of Construction Insurance is customized for your needs. Your project is unique and this should be reflected in your policy. Our agents at Builder’s Risk.net will write up a policy that covers you for the risks you are exposed to. Fire, theft and vandalism are only 3 examples of coverage provided. There are many more loss events that can be covered, or excluded as per your needs.
Our agents at Builder’s Risk.net are a call away. We are experts in insurance with a solid knowledge of the construction industry. Our agents will talk you through the available options. Call Builder’s Risk at 877 960 0221 and get the coverage you need.