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, being prepared 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.
As a contractor, you have liability insurance because it’s required by state boards. To comply with building code regulations, you have to show proof you’re adequately insured. 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.
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.
Surprisingly, Builder’s Risk Insurance can cover a wide variety of scenarios outside of your control, including:
You should note hurricanes, earthquakes, and floods are not covered unless the policy specifically says otherwise. Additional coverage for floods can be included.
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.
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.
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.