Finding the right insurance cover for your small business is one of the keys to its success.
Small Contractor Business Insurance, which includes General Liability, Workers Compensation, and Builder’s Risk insurance, is specifically to protect your business from unforeseen financial and legal risks.
In this Builder’s Risk guide for small business owners, you will not only learn how the policy works, but how best it protects your business operations.
Builder’s Risk insurance, or Course of Construction insurance, is a form of property insurance designed to protect you and your company while on building projects from damages resulting from fire, theft, vandalism, and other associated risks.
Any person or institution with a financial stake in a construction project needs Builder’s Risk insurance coverage. This includes:
Builder’s Risk insurance for your small business offers coverage to help protect you from financial losses as a result of disruption to operations, such as seasonal fires. In California alone, wildfires have damaged 3,180 properties as of August 31. this year
Types of property included in coverage: However, only some structures are protected. These include: buildings/structures, scaffolding, building materials, supplies, and equipment (on-site, off-site, or in transit), fixtures, construction signs and foundations
Covered causes of loss: Builder’s Risk insurance is coverage for property damage. The causes can include fire, theft, vandalism, hail, rain, smoke, lightning, explosion, and aircraft/vehicle collision. Severe weather events, such as floods, hurricanes, and winds, are usually excluded in a standard policy but may be purchased as coverage extensions.
Of course, you should always customize your insurance policies to fit the needs of your business or project. When it comes to Builder’s Risk, you may need additional coverage like:
It is essential that you read your policy to know what it doesn’t cover. Builder’s Risk insurance policies do not usually offer coverage on damage caused by:
On average, a Builder’s Risk insurance policy costs between 1% to 5% of the total construction cost. The exact amount you pay for your policy is determined by various factors, such as type of project, construction materials used, project location, policy extensions, and coverage limit.
Choose between various policies offering 3 months, 6 months, or 12 months coverage. And, if your project is not completed by the end of the initial policy term, you can extend the length of coverage, but usually, this is only as a once-off.
Why purchase Builder’s Risk insurance for your small contractor business from Builders Risk? We help you find the right small contractor business insurance policy for your business from one of three top-rated professional insurance providers at an affordable rate. Contact us today at 877 960 0221 to find out how we can help protect your small business.