Change is inevitable during construction projects. And when it happens, your insurance needs to adapt with it. A Change Order Endorsement is an essential tool that allows you to cover these adjustments made to the original scope of work or project costs. Without this endorsement, you could face financial exposure from modifications not covered by your existing policy.
Change orders often include:
Change orders can significantly impact the overall cost and timeline of your project. Without proper documentation and insurance protection, these commonly occurring changes may lead to disputes, delays, or unexpected financial strain. Change Order Endorsements ensure that modifications to your construction contract are covered, protecting you from unforeseen liabilities and expenses.
To better understand how change orders work, here are a few examples of when they may be necessary:
A client decides to add an additional floor to a commercial building midway through the project. The change order would update the contract to include the new work and adjust the project timeline and budget accordingly.
The designer specifies a higher-quality material for the interior finishes, which increases costs. A change order would account for the price difference and update the project contract.
Unexpected delays due to severe weather conditions push the project timeline back by two months. A change order would update the contract to extend the project’s completion date and ensure the Builders Risk policy covers the additional time on site.
Midway through construction, the architect modifies the design of the building’s facade. A change order would reflect these design changes and ensure that the insurance policy covers any additional costs.
To ensure your project is fully protected, it’s important to take steps to address potential coverage gaps in your Builders Risk policy. Here’s how you can protect your project against these risks:
Write a detailed description of the change, including the reasons for the modification and its impact on the project scope, costs, and timeline.
Ensure that all parties involved agree to the changes and sign the change order.
Contact your insurance agent or provider to adjust your Builders Risk policy.
Once the change order is approved, update the original contract with the new terms, ensuring all parties retain a copy of the updated agreement.
If you want to add a Change Order Endorsement to your Builders Risk Policy, we encourage you to get quotes from our experienced agents.
Our experienced agents are well-versed in construction projects and what can happen to delay your project. After understanding your building project, our agents can usually reduce policy prices through additional discounts of 10% to 15% from the instant quotes you receive.
We provide the finest comprehensive plans for your business by providing:
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Yes, every time the scope, budget, or timeline of your project changes.
Yes, depending on the size and scope of the change, your premiums may be adjusted to reflect the new risk profile.
No, verbal change orders can lead to disputes and miscommunication. Always document change orders in writing and ensure they are agreed upon by all parties involved.
Get a quote for Builders Risk Insurance by filling out our short form or contacting our specialists directly.
