Is Builder’s Risk Insurance Coverage for Property Damage?

As a contractor, you want to minimize the impact of risk to your business. So, how can you protect your business against financial loss as a result of property damage? Let’s look at 2 policies designed to protect against this: Contractors Liability and Builder’s Risk.

Finding the insurance that best suits your business requirements can be overwhelming at the best of times. It can be confusing when you hear the terms property damage and property replacement thrown into the mix.

So in this article, we will give you the low down on both types of insurance and what they offer your business. Above all, we hope this will lessen the confusion.

Contractors Liability Insurance

Contractors Liability insurance offers your business protection against damage to the property of a third-party. For example, you have protection if your company damages a homeowner’s property. On the other hand, say one of your crew accidentally breaks a client’s window during onsite work, or you drop a heavy tool onto a neighbor’s outdoor table.

In addition to protection against third-party claims of property damage, your Contractor’s Liability also provides coverage for the following:

• Firstly, injury

Your business has coverage against injury claims by a third person.

Note: Coverage does not extend to your employees. For this, you require Workers Compensation.

• Secondly, completed products

Protects your company against claims related to services you have completed or products produced. For instance, if the work undertaken by your company causes harm to your client, you’re insured if the client wants to hold you liable for costs.

• Thirdly, harm to reputation

Something like using a photograph of work completed for promotional purposes without authorization from the client could be sued.

However, your policy will protect your business in a case such as this.

• Last but not least, advertising mistakes

Accused of taking a slogan from another building firm to use as your own?

Under those circumstances, Contractor’s Liability provides coverage to deal with claims where you have infringed on others’ copyrights in your business’s advertising.

Builder’s Risk Insurance Coverage

Builder’s Risk insurance offers your construction business protection for property damage resulting from fire, weather, and vandalism. But this sounds very similar to Contractors Liability, right?

The biggest difference is that Contractors Liability is coverage for third-party claims, whereas Builder’s Risk is coverage for direct damage to the property (building) you are working on, or the building materials transferred to the site.

So Builder’s Risk is project-specific coverage for:

• Residential new construction
• Residential remodeling or smaller projects
• Model homes and model home contents
• Commercial property construction

Note: A Builder’s Risk policy may be necessary to show proof of insurance to comply with local city, county, and state building codes and is often a condition attached to contracts.

Yes, Builder’s Risk Insurance coverage is for property damage

As you can see, both policies protect your business from the financial implications of property damage. Would you like to know more about the best insurance for your needs?

At Builder’s Risk Insurance company, our team of dedicated agents are standing by to give you the best insurance advice in the business. Call us at Builder’s Risk Insurance at (877) 960-0221 for a free quote today.