Small Contractor Business Insurance can include General Liability, Workers Compensation, and Builder’s Risk insurance. The program is specifically designed to protect your contractor business from unforeseen financial and legal risks.
In short, insurance is one of the keys to your business success. But, how do you find the right insurance cover for your small contractor business?
Firstly, do you know what you need insurance for? Secondly, do you know which policies provide the coverage you need? Last but not least, how much should you pay to protect your building project?
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. It’s designed to protect you and your company from financial loss in the event of 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. So this can include:
Builder’s Risk insurance for your small business offers coverage to help protect you from financial losses as a result of disruption to operations. One example is 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:
Covered causes of loss:
Builder’s Risk insurance is coverage for property damage as a result of:
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. With this in mind, check your policy exclusions. Builder’s Risk insurance policies do not usually offer coverage on damage caused by:
A Builder’s Risk insurance policy costs between 1% to 5% of the total construction cost. However, the exact amount you pay for your policy is determined by various factors. These include the 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. Construction projects are notorious for taking longer than anticipated. With this in mind, you will be pleased to learn that you can extend the length of coverage. So it can be extended if your project is not completed by the end of the initial policy term,
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.
As a final point, your coverage does not have to be expensive. We find the best at an affordable rate. Contact us today at 877 960 0221 to find out how we can help protect your small business.