Does Your Builder’s Risk Insurance Policy Cover What You Need It To?

In a market with little standardization, how can you choose coverage with the best Builder’s Risk Insurance policy extensions for your construction business?  Just 5% of construction costs can put a dent in your pocket. So, although you may have a policy you feel is good enough, will it cover all your needs? 

In this guide we’ll look at 5 types of coverage a basic Builder’s Risk Insurance policy may not provide.

1: Earthquakes and floods

Your Builder’s Risk insurance will cover wind, fire, hail and lightning damage. However, earthquakes and floods wreck properties and equipment, aren’t covered. Companies in more at risk areas of severe natural environments could gain reassurance from more carefully-chosen policies. 

For instance ,California and Alaska are earthquake hotbeds.  Although many contracting companies operate there (especially California) they aren’t covered. In these circumstances, a basic policy extension could rescue your business from some devastating losses.

2: Pollutant cleanup

Fire damage is covered by most Builder’s Risk policies.  But what if the fire spreads to your materials? Resulting fumes and spillages might contaminate soil or groundwater. If this happens, pollutant removal services will be expensive.

Pollutant cleanup costs can be covered by your Builder’s Risk policy extensions. This could be a lifesaver for your business if you handle potentially toxic materials. 

3: Damage or theft to temporary structures

Standard Builder’s Risk insurance will cover the property for the duration of your work. But scaffolding isn’t categorized as part of the property – even while on the job site. 

For any construction company that uses temporary structures, Builder’s Risk policy extensions are worth considering.

4: Property in transit

Another often-overlooked exposure is property loss on the way to the job site. Since it occurs off-site, it isn’t covered.

Most contractors’ equipment will be on the road for some amount of time. You may want to look at Builder’s Risk policy extensions to cover equipment in transit. Accidents, breakdowns and adverse road conditions or weather could inflict unexpected damages on your business.  It’s always best to be prepared.

5: Green building coverage

‘Green’ construction is expanding rapidly.  Between 2005 and 2010, the market was estimated to have expanded from $3 billion to a possible $54 billion.   

If a vehicle crash or storm affects your site, your Builder’s Risk insurance will pay for the debris removal, and dumping it in the nearest landfill. If you market yourself as a green company, this could mean a choice between a significant payout or a damaged reputation.

A well-chosen policy can safeguard your company’s green status. Extensions to your Builder’s Risk can be added for debris recycling and air quality restoration. You can also add coverage for the repair and replacement of renewable energy sources.

 Whenever your Builder’s Risk insurance is triggered, this could allow you to stay green without losing money.

Covering all your bases

As you know, there are countless financial perils in this industry. Every company and each construction job presents its own unique concerns. Basic insurance may shield you from some threats. But without the right Builder’s Risk policy extensions you may be vulnerable to losses you haven’t even considered. We’d like to help you with an insurance policy that best protects your particular construction company. Give us a call at Builder’s Risk at 887 960 0221 to find out more.