Is Builder’s Risk Insurance for General Contractors?

The answer to Is Builder’s Risk Insurance for General Contractors? is a resounding YES. A Builder’s Risk policy will help protect you against financial loss. Of course this is always the job of insurance.

However, Builder’s Risk coverage is specific and includes coverage from stolen items such as tools and equipment, vandalism, or even fixtures from the property in construction.  

Builder’s Risk Insurance for General Contractors doesn’t provide coverage for liability; therefore, it is advisable to take up liability insurance to protect your client or third parties against losses that might be caused through your actions.

Business protection with Builder’s Risk Insurance for general contractors 

As a general contractor, it is crucial to bear in mind that your building activities are at risk throughout the time you are working on them. Securing yourself against any loss with the right Builder’s Risk Insurance coverage is essential.  

Builder’s Risk Insurance for general contractors is a specialized policy which will cover you for several types of projects, including: 

• Installation of permanent fixtures, such as plumbing, electricity, and solar panels
• New construction of a building or structure
• Remodeling of interior fixtures in a home or other building
• Restructuring, such as removing load-bearing walls, adding a new staircase, or reinforcing a building’s foundation.

Does your general contractor business qualify for Builder’s Risk Insurance?

As any general contractor knows, there are many risks associated with starting a new project.  To protect yourself against unforeseen eventualities, it is prudent to have the right insurance coverage in place to protect the business you have worked hard to make a success. 

Insurance coverage also demonstrates to your clients that you are committed and accountable to your construction activities. By having this cover, you will win the confidence of many clients – making your business even more successful!

These are the minimum requirements you will have to meet when you are shopping for Builder’s Risk Insurance for general contractors. 

• You must have more than two years of work experience in the construction business
• You must have an insurable interest in the establishment
• The project must be new or less than 30% complete

What you should know about a Builder’s Risk Policy

You’ll be happy to hear that the application procedure for a Builder’s Risk policy is very straightforward. It’s a simple process for any general contractor because there is no underwriting involved.  Your Builder’s Risk policy can vary in length and can be valid between six to twelve months. Renewals can be done easily so long as there are no claims. However, renewals may not be possible if the project goes on for more than two years.

However, when taking out your policy, it’s important to note that Builders Risk Insurance doesn’t cover the following:

• Loss incurred due to crime perpetrated by your employees
• Loss of equipment due to violence or wars
• Deterioration of the equipment’s value due to wear and tear
• Destruction of the establishment by natural catastrophes, e.g., earthquake, landslides, etc.

To find out if your business qualifies for Builder’s Risk Insurance, contact our team of insurance experts on (877) 960-0221