3 Reasons Roofing Contractors Need Builder’s Risk Insurance

A Builder’s Risk Insurance policy is ideal for roofing contractors when your project is new or 30% complete. But, why exactly do roofing contractors need Builders Risk Insurance? Isn’t Roofing Insurance enough?

Roofers Insurance

There is nothing more important than being as stress-free as possible when running your business. Roofing contractor insurance coverage can help you in different ways:

• It protects your clients and other third parties against bodily injuries that might be caused through your roof building and repair activities
• Roofing contractor insurance is one of the requirements that you have to meet to win contracts from clients
• It protects your business against property damage claims.

Roofing Contractors need Builder’s Risk Insurance to fill the gaps

Do you notice what’s missing? Roofers insurance protects you against third party claims. It doesn’t protect your materials or equipment used in the course of the construction project.

There are 3 key points to consider:

1. By having Builder’s Risk Insurance, you will protect your construction materials and equipment against loss. This includes scaffolding, vandalism and theft.
2. A Builder’s Risk policy protects the new building that is being constructed.
3. This policy can also cover labor costs and profit.

As you know all too well, being a roofing contractor exposes you to many risks. Not having the right policy in place could ruin your business if you experience financial loss or damage. The majority of the roofing contractors need Builder’s Risk Insurance to protect their equipment or materials against theft and to cover their establishment from vandalism.

Your Builder’s Risk  will provide coverage to property that is new, or is no more than 30% complete. The policy is quick to set up and is usually valid between six to twelve months.

Is this all there is to know about Builder’s Risk Insurance?

Not really. Bear in mind that under your Builder’s Risk Insurance policy some costs, such as legal and architect fees, are not covered.  However, these can be incorporated via endorsement. It’s important to discuss all these points with an insurance company when setting up your roofing contractor insurance program.

This insurance policy doesn’t cover some risks, such as destruction of equipment by natural calamities, loss of material through your employees’ crime, and wear and tear of your tools.

Also, you ought to be aware that you will need to insure your projects to the tune of 100% of the building’s value. Note that this figure isn’t a market value, and it excludes the cost of land.

Get help from the experts

If you are a roofing contractor, and still confused about the difference between Roofers Insurance and Builder’s Risk contact us and we’ll walk you through it.  Our insurance agents have years and years of experience providing the best insurance at the best rates for contractors across the States. Get help here (877) 960-0221