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Building under construction insurance is called Builder’s Risk Insurance. One of a builder’s greatest risks is a loss of your reputation. Why? It’s because one of your greatest assets is your business reputation. A damaged or bad reputation can bring your contractor business to its knees. Or can it?
You might be wondering why your reputation matters so much. In this article, we’ll take a quick look at the value of a contractor’s reputation. We’ll also answer the question, Can building under construction insurance build your reputation?
Why your contractor reputation matters
What do the pro’s say? Nielsen provides a market research service. It includes insights into American consumer behavior including shopping patterns, media behaviors, lifestyle and demographic information. They’ve been doing this for over 90 years, so I think we can trust them.
Nielsens reports that “88% of people place the highest level of trust in word-of-mouth recommendations of from people they know. Also, they trust online reviews written by other consumers as much as they trust recommendations from personal contacts.”
What does this mean to your business? No matter what you spend on top class marketing and advertising, your business reputation can be destroyed by one simple thing: word of mouth.
So, the value of your contractor reputation creates business referrals.
Can contractor insurance help?
Let’s start with the most common forms of contractor insurance:
- General Liability Insurance: This coverage is mandatory in most states. This policy protects your construction business from financial losses that come from third party claims. Examples include a client that trips over equipment on your site and sustains bodily injury, or equipment that falls onto a neighbor’s car and causes property damage.
- Workers Compensation: is also mandatory. This is coverage for claims from employees who are injured or disabled by actions during the course of their work. It also covers fatalities.
Unfortunately, this leaves gaps in your insurance coverage.
The value of construction insurance
As mentioned, building under construction insurance is called Builder’s Risk Insurance. It is also known as course of construction insurance. This means that your ground-up construction project, renovation or remodeling project is covered for some of the gaps.
General Liability coverage protects your business from financial losses due to claims of libel, slander, violation of the right of privacy and more. For instance, you use pictures of a client’s house in your promotional materials without their consent. If they sue your business, you have coverage.
But, this isn’t all you need.
Builder’s Risk Insurance and your reputation
Your contractor reputation relies on your business performance. This includes the quality of your workmanship. It also depends on whether you complete projects on time. A third contributor is your ability to solve problems.
Things go wrong on site. It is the nature of the construction industry. The thing is, does your construction business have the financial resources to keep working when this happens?
Your reputation for doing a good job and not cause the client any hassles makes the difference.
This is where Builder’s Risk insurance helps. It covers things like materials and equipment that will be used in the course of the project. Therefore, do you have the financial strength to replace these items and continue the project?
Get building under construction insurance protection today
For the best advice and rates on your Contractor Insurance program that includes General Liability and business under construction insurance, call us today. We can help. Contact one of our agents at Builder’s Risk at 877 960 0221.
