No! Contractors coverage should be supplemented by Builder’s Risk insurance protection. Let’s find out why.
Insurance helps protect an already narrow margin from risk-related costs and claims. Most construction companies report an average gross profit margin is between 17% to 18.7%. Construction companies incur expenses such as the purchase of materials and equipment, payment of wages and overtime, transport costs, and many more.
Contractors Business Insurance protection covers third-party claims for damages caused by you or your employees. But does it protect your business against the financial risk you face every time you take on a new building project?
Do you need Builder’s Risk insurance protection? Let’s take a look.
General Liability protects your business from:
Construction sites in residential areas can result in the accidental injury of residents. Contractor liability insurance covers medical costs or third parties within your construction site.
Personal injury refers to any damage to a third-party’s reputation caused by you, that results in wrongful arrest, libel, slander, or wrongful prosecution. Advertising injury is the unlawful use of copyright material in advertising campaigns. Both of these can result in expensive lawsuits.
Due to the heavy machinery and building materials, damage can occur to surrounding buildings and property.
You’ll notice that this coverage is for third-party claims. However, your contractor business faces other high-risk dangers. Builder’s Risk insurance protection complements Contractors Liability insurance giving you comprehensive coverage.
Damage to equipment, temporary structures, and construction materials during building can be expensive. Builder’s Risk insurance covers the cost of repair, replacement and wages used up until damage or loss occurred. It’s a great way to protect your business against fire, flooding, and vehicle accidents.
Builder’s Risk insurance protection gives coverage for:
Let’s recap what isn’t covered by Contractors Liability insurance. Many contractors who see this list quickly turn to their insurance consultants to get the gaps closed as soon as possible. Here’s the list.
Do you have the right coverage, or is your business you underinsured?
Underinsurance exposes you to financial and legal costs that can bankrupt your business. If your business is underinsured, your insurer will only cover part of the claim costs, leaving you to cover the rest.
So, although Contractors Liability has its advantages, it may not be as comprehensive as you might need. Find out whether you should also be investing in Builder’s Risk insurance protection. We can answer your questions. Get in touch with us at 877 960 0221