Builders Risk Insurance vs. Course of Construction Coverage

Builder’s Risk Insurance is just another name for Course of Construction Insurance.  It’s things like this that explain why so many contractors are confused by insurance.

What contractors across the US are certain of, however, is that theft of construction equipment is on the rise.

The National Equipment Register (NER) collects crime stats. Their 2019 report puts the loss value of construction equipment at $1,325,000. Forklifts, generators, compressors, welders, and excavators make the top 10 list.

Does this mean it’s just a matter of time before you are a victim of crime? Some people are just lucky. Other people make sure they’re lucky by being prepared for things that could go wrong. Is Builder’s Risk Insurance part of this preparation? Let’s find out.

What Is Builder’s Risk Insurance? Here is a handy guide to explain what Builder’s Risk Insurance covers. 

How Builder’s Risk Insurance works for you

So, know we know Builder’s Risk Insurance and Course of Construction Insurance are just two names for the same policy.  Let’s look at exactly how this policy protects your business.

Builder’s Risk covers your insurable interests. Coverage includes damage sustained to work tools and lost or stolen materials used onsite. And you’re protected until the project is completed, usually within 12 months.

Builder’s Risk Insurance also protects against weather and water damage, mechanical breakdown, and theft. In some cases, a policy can be extended to cover debris removal and temporary structures. 

As you can see, Builder’s Risk Insurance or Course of Construction Insurance play a crucial role within the construction industry in protecting your business. 

What your Builder’s Risk Insurance Policy protects you against

The Builder’s Risk can cover much more than you know, including the following:

• Debris Removal: If an accident occurs, there will be debris to remove from the site. Removal can be time-consuming and costly. Builder’s Risk covers the majority of the expenses. This reduces time delays and out-of-pocket expenses.
• Electronic Data: Blueprints and schematics are widely used by contractors. When you have a data breach and documents are lost, your policy will pay to replace them. This avoids lengthy delays in construction while the documents are recovered. 
• Cleanup Costs: Pollutants from a fire or flood cause hazards. Cleanup is expensive but necessary. Your insurance policy will cover these costs, even if a specialist is required. 
• Equipment during Transit: Equipment and tools are often stored offsite and moved to the site as and when it’s needed. However, there are considerable risks on the road. Builder’s Risk aims to cover the costs should something happen. 

What you should know about Builder’s Risk Policies

Builder’s Risk Insurance should be active before work begins. And, your policy should be in place before you move materials and tools onto the site. This way, all supplies are covered. Should something happen before your insurance is in place you’ll be left-of-pocket. Usually, your policy ends when the work is finished. Some policies will remain active up until the time when an occupant is in place.

Make sure you are properly protected

You work in a demanding industry. You do what you can to ensure nothing goes wrong, but it doesn’t stop incidents from happening. With Builder’s Risk Insurance, you can ensure your tools and materials are covered. Let us help you find the right insurance. Call us at (877) 960 0221 and get a FREE quote.