According to Farmer brown, about 50% of construction contractors in Montana experience theft on the job site while handling a construction project, which makes a builder’s risk insurance policy an essential coverage to carry. In this article, we review how to get the best cheap builder’s risk policy and why construction businesses need to own one.
The construction industry is associated with many risks, and it’s vital to have proper liability coverage. Builders’ risk insurance covers these risks and ensures you do not lose your financial stake in the project.
Builder’s risk insurance is also called Course of Construction Insurance. The policy covers new construction projects and the renovation of an existing structure. However, it doesn’t cover an already completed building.
The coverage begins immediately when the construction project commences. It protects our financial assets if any covered loss occurs while on the job. Ultimately, the policy provisions ensure you don’t pay for any financial implications out of pocket. The coverage ends upon the project’s completion.
An agreement should be made in the construction contract on who will be the primary insured in the policy. That ensures no shift of blame or responsibility in case any claim or event occurs. Usually, the contractor, building owner, engineer, or anyone with financial interests in the project can carry the policy and add others as the additional insured.
The builder’s risk insurance policy covers every possible risk you can face while handling residential or commercial projects. The everyday dangers in many of Montana’s construction sites are theft, property damage, and injuries.
Many things can be responsible for these risks, including vandalism, negligence, fire outbreaks, snowstorms, hail, etc. Coverage options vary widely with insurance companies. Thus, you should work closely with an insurance agent to customize the builder’s risk policy that suits your business.
Here are the liabilities that builder’s risk policies cover:
Builders’ risk has a lot of exclusions, and you may have to contact your insurer to add coverage for certain things you think you should have. Without further ado, here are a few of the things not covered in the builder’s risk policy:
Other insurance policies can always cover whatever liability is excluded in the builder’s risk insurance.
Ideally, most insurers in Montana charge between 1-5% of the total construction value for the project’s duration. Thus, an insurance company may consider factors like construction cost, duration, location, coverage limits, level of risks exposed to, the number of available equipment, etc. to determine the premium the contractor or project owner has to pay.
The scope of your services or the magnitude of the project you’re handling will determine what will be included in your policy coverage. Coverage inclusion, in turn, determines how costly your premium will be. However, you can leverage an independent insurance agency to find the best cheap builders’ risk policies in Montana.
Independent insurance agencies usually have experienced independent agents or brokers that work with several reputable insurance companies offering the best deals on business insurance policies, including the builder’s risk policy.
Therefore, we can help small business owners and contractors get multiple free quotes from various insurers within minutes to compare coverage, rates, terms, and other essential things before purchasing any policy. That helps you get the best deal at a cheaper rate.
The best cheap deal for you will be a policy that covers almost all the risks you may encounter and allows added coverage, which will save you from buying different policies.
The world of insurance isn’t easy to navigate without proper guidance. Thus, always leverage an insurance agency. Finding brokers or agencies in Montana isn’t difficult. You can reach out to Builders Risk Insurance to get started.