The short answer is, yes. Construction company insurance can protect your building profits. However, it important to note that construction company insurance is not one just policy that protects your business from all financial risks. In fact, construction company insurance is not an insurance policy at all. Confused?
A contractor business like yours invests in insurance to reduce financial risk, right? But there are a number of different risks that you face in the course of doing your job. For example:
No one policy provides protection for third party claims, employee injuries, commercial vehicle theft, and project profits. Construction company insurance is an umbrella term for the group of policies that you purchase to protect your contractor business. Every contractor business faces different risks, which means that every construction company insurance program must be customized.
Your building project profits can be protected by a Builder’s Risk policy. This is course of construction coverage, which means that it is project specific and is valid only for the period of construction.
In case of damage to the structure, you could be reimbursed for a percentage of profit earned as of the date of the loss. Damage could be as a result of:
Builder’s Risk Insurance is designed to protect buildings and structures that you are building, renovating or remodeling. It provides coverage for the costs of construction, the equipment and building materials being used in the construction project, property replacement costs, and loss of profits.
It is important to note that Builder’s Risk Insurance is not day-to-day coverage like you have with Contractors Liability Insurance or an Inland Marine policy.
For instance, with Builder’s Risk only the building tools and equipment that is being used for that particular project has protection from theft, whether from your construction site, from the place of storage or in transit. Inland Marine is coverage that goes wherever you go. Your equipment and tools will be covered for all your projects, not just one.
However, a Construction Company Insurance program with Inland Marine instead of Builder’s Risk will cover equipment theft, but not your profits. Should you have both? Get professional advice from our experienced insurance consultants. Call Builders Risk.net at 877 960 0221.