Builder’s Risk Insurance. Better Risk Management.

Just how much easier is construction risk management with Builder’s Risk Insurance? Anyone who works on construction projects knows that it comes with risks. The thing is, preparedness for those risks makes you a better contractor. 

So, with that in mind, here are a few things you need to know how Builder’s Risk Cover helps with  risk management. 

Isn’t General Liability Insurance enough coverage?

As a contractor, you have liability insurance because state boards require it. To comply with building code regulations, you have to show proof of adequate insurance. But liability insurance doesn’t protect your business from all risks that come with construction. 

If you want to do more than cover your business against financial loss that comes with third party claims, you will have to add other policies to your Contractor Insurance bundle. One of these policies is Builder’s Risk Insurance.

Third party claims is not the only risk

The purpose of insurance coverage is to reduce your financial risk and losses should something go wrong. Construction conditions are unpredictable. Unexpected natural events happen easily and are ultimately very costly. You can’t always predict the weather or how it’ll impact your work. And that’s why Builder’s Risk Insurance is necessary. 

What does a Builder’s Risk Policy cover?

Surprisingly, Builder’s Risk Insurance can cover a wide variety of scenarios outside of your control, including:

• Lightning: When lightning strikes the building, it causes structural and foundation damage. The costs to repair are expensive but because you have a Builder’s Risk Policy, you can cover them. 
• Theft: If a thief comes into your building site and steals your building materials or tool, your insurance can cover such incidents. You’ll be able to replace the missing tools and materials without loss. 
• Vandalism: Vandals wreck the building. They undo the work you’ve already completed by ripping out the wiring and destroying water pipes. However, you can cover the costs to repair. 
• Fire: An accidental fire spreads through the building, resulting in major repairs. You can cover them as long as the fire is not a malicious act committed by an employee or subcontractor of your business. 
• Explosions: If an explosion occurs and severly damages the building, you can cover your costs.

You should note hurricanes, earthquakes, and floods are not covered unless the policy specifically says otherwise.  Additional coverage for floods can be included. 

Do you need risk management insurance?

Risk management with Builder’s Risk Insurance looks at the likelihood of problems occurring, along with the financial aspect. And, the potential impact on your business. Let’s say there’s a three-month delay because of the theft of building materials. That potentially means you and the property owner are left out-of-pocket. 

Easy risk management tool 

Risk management looks at design risks. This could be omissions or flaws in the original building design plans. Also, it looks at the external risk factors, such as if there’s the potential for public objections to occur. Or, if additional changes are requested later. You can also find risk management considers environmental hazards. And looks for ways to reduce the impact on the environment. It’ll also look at the risks from a workforce with little experience, delays, and of course, construction risks.

Better risk management with Builder’s Risk Insurance 

It goes without saying that risk management is something you have to consider as a contractor. One of the easiest ways to protect your business is by being properly insured. General liability insurance is not enough. Improve your risk management with a Builder’s Risk policy. To find out how to protect your business against various risks, contact our helpful team of experts on (877)960-0221.