Building Insurance is more crucial than ever. In a $1.3 trillion dollar industry, construction companies take many shapes and sizes. Their risks do too. You may carry Building Insurance you’re fairly happy with. But is it designed specifically for your business? The beauty of Builder’s Risk is how adaptable it is. You can customize a policy around your specific business and project needs.
In this article we’ll talk you through 4 different types of customized Builder’s Risk insurance.
Standard Builder’s Risk covers wind, rain, fire, lightning and criminal damages to the property during construction. But every job is different. A huge factor is location. Especially weather conditions. Earthquakes are more common in some areas, but aren’t covered by default anywhere. If you operate in California – which experiences quakes over 6.0 magnitude – then your business is at risk. Floods and water buildup are more of a risk to sites in Florida. The state has 1.5 million people living on a FEMA floodplain.
With exposed materials and expensive machinery everywhere, your project can be at high risk. It’s sensible for contractors to protect against incidents more common in their area. Customizing your Building Insurance for these risks will help protect against losses.
If you work with potentially toxic materials, like hot tar, you can save money with customized Builder’s Risk. If there’s a fire, the property itself will be covered by a standard policy. But if your materials are set alight, fumes could reach the soil and groundwater. Then you’re looking at a bill for cleanup. This is one reason construction fires are so damaging – causing $300 million in losses in 2018 alone.
Fortunately, there are extensions to pay for pollution cleanup. Builder’s Risk can be customized to suit whatever third-party risks your work exposes you to.
Different scale, different risks. It’s pretty straightforward, but worth taking into account when you get Building Insurance. If you run many vehicles, or several sites at once, you can extend your policy beyond the site to include property in transit. With 6 million US road accidents a year, this is worthwhile for any construction company.
For large-scale jobs using lots of scaffolding or elevators, an extension for temporary structures could prevent harsh costs. 20% of Builder’s Risk claims involve theft. Your customized Building Insurance extension provides extra protection against it. At $40,000 a trailer load, scaffolding could be a huge financial risk without that coverage.
Certain kinds of Building Insurance coverage are great for getting clients. A green construction extension allows you to tell clients you’ll pay for renewable energy sources. The coverage also includes air purification and debris recycling, should an external event cause damage.
A green construction extension helps you stay competitive in a sustainable building industry projected to hit $364.6 billion by 2022.
With the help of our industry professionals, you can create customized Builder’s Risk insurance. We help you design a policy around your unique requirements. This way, you’ll get the extensions you really need. You won’t be stuck with a general policy that leaves certain areas exposed. Get started on a customized policy today by calling Builder’s Risk at 887 960 0221.