How Builder’s Risk Insurance Policy Prevents Business Failure

A Builder’s Risk Insurance policy could be the saving grace for your business. Construction is risky.  Unexpected events can happen that end up costing you a lot of money.  Many small contracting businesses don’t survive when things go wrong.  Let’s look at some of the events Builder’s Risk insurance helps with, and if your business qualifies for a policy.

Things That Go Wrong On Sites

There are many things that can go wrong on a building project.  In looking at them ask yourself if your business would survive them without insurance?

• Fire.  There are more than 6000 fires on construction sites every year.  Small fires are often caused by cooking equipment and cause limited damage.  There are also very destructive fires caused by temporary electrical installations, hot work, or smoking in the presence of flammable material.

• Theft.  This ranges from the loss of some tools, to the theft of expensive equipment.  Materials are also frequently stolen, such as copper wiring, fixtures and fittings.  It is very common, especially on small sites with limited security.

• Changes in Building Laws.  When a building ordinance changes you have to comply. A change in a building ordinance can mean design changes and rework and this can be an expensive process.

• Weather Events.  Hail can cause extensive damage on a building site, most commonly to roofing.  High winds are another hazard. There are frequently temporary structures on a site, like hoarding or temporary roof sheeting.  These can be blown over by high wind and damage your building. Flooding and water damage is also common.

• Damage to equipment stored off site.  Sometimes it is necessary to store expensive equipment like HVAC systems off site until you need them.  These could be stolen or damaged when they are transported to site.

This is a small sample of the risks construction projects face.

How Does A Builder’s Risk Insurance Policy Help?

A Builder’s Risk Insurance Policy is also known as Course of Construction Insurance.  Its purpose is to safeguard you from losses that happen during the building process.  Your policy is customized for your project to include the coverage you need.  In the event that a risk materializes, you don’t have to pay for the losses out of your own pocket.

Do You Qualify For A Builder’s Risk Insurance Policy?

Builder’s Risk Insurance is specialized property coverage.  It is only for the construction of new buildings and the renovation or restructuring of existing ones.  A policy can cover the whole of the project and all of its participants- the developer, contractor, sub-contractors, lender.  Anyone with a financial interest in the project can be covered by the policy.  The policyholder must have two year’s experience in their area of expertise to get a policy.

How can you get your Builder’s Risk Insurance Policy?

At Builder’s Risk.net we specialize in this insurance.  Our agents are experts with experience in the industry.  All it takes is a phone call and a few minutes of your time.  We represent A rated insurance carriers and will get you a policy tailored for your business. Call Builder’s Risk at 877 960 0221 and protect your business from future loss.