Construction company insurance can be key to making your new project a success. There are many risks, unknowns and unforeseen events in construction. Insurance helps when things go wrong so your project is not derailed. Most contractors have some form of liability coverage, Workers Compensation, and vehicle insurance. Adding Builder’s Risk Insurance to this mix covers you for many perils you face.
Builder’s Risk Insurance is property coverage. It is specialized insurance that covers particular types of construction. These are:
This construction company insurance can be purchased by anyone undertaking a building project. One policy can cover the whole project which covers all those taking part. As a homeowner you can also purchase a policy when you undertake a renovation. It is important to do so as property insurance does not protect you properly when your home is under construction.
Builder’s Risk Insurance covers you for many hazards. Most policies include coverage for your materials and equipment. The causes of loss that are typical to most policies are fire, theft, vandalism and weather events. This coverage is very flexible. It should be customized for your project so that it gives you the coverage you need. You can specifically add other causes of loss such as delays due to ordinance changes, or even earthquakes.
Unforeseen events are common on projects. Some of them can cause major delays or damage. When you do not have this construction company insurance you need to pay for them out of your own pocket. Your profits can be whittled away quickly. Most clients will insist this coverage is in place before you start on their project. It gives them assurance that when something goes wrong you will have the means to continue.
It is important that you get the right coverage for your project. When you buy the cheapest policy available it can turn into an expensive mistake. A policy will generally be between 1 and 4% of the cost of the project. The biggest determinant in the cost is the value of the project. Your policy must be valued at 100% of the replacement cost of the completed building. Anything less than this will mean you are underinsured.
As mentioned, getting the right coverage is very important when you buy this insurance. It is possible to find the lowest available rate for a policy when you work with us at Builder’s Risk.net. We specialize in this insurance. Our agents will negotiate on your behalf with our network of A-rated carriers. With Builder’s Risk.net you get the right coverage at the lowest rate. Builder’s Risk at 877 960 0221.