Only Some Projects Qualify for this Construction Company Insurance

Some contractor insurance is not specific to the construction industry.  Things like General Liability, Workers Compensation and Commercial Auto Insurance are applicable to all businesses. Hence, Builder’s Risk Insurance is different.  Specialized construction company coverage, it only applies to construction in progress.  Only certain types of construction projects benefit from it.

Projects that qualify for Builder’s Risk

This specialized property coverage applies to:

1. Construction of new buildings

This insurance covers property during the building process.  It starts from breaking ground to completion of the building. Thus, new property, when it is ready for occupation needs this coverage.

2. Renovation of an existing building

The renovation of a commercial building or a home qualifies for Builder’s Risk Insurance. This could be a small project like extending a kitchen or adding a garage for a homeowner.  It could also be a major refurbishment of a commercial building.

3. Restructuring of a building

Builder’s Risk Insurance applies to changes made to an existing building.  Examples of this could be adding a staircase, reinforcing foundations, or removing a load-bearing wall.

Who can purchase a Builder’s Risk policy

This contractor insurance is specific to a project.  This means that the one policy covers all the participants in a project.  The policy holder could be the homeowner, the developer, the contractor, or the project owner, for example.  Subsequently, there is a requirement that the party that purchases the policy has 2 years of experience in their field of expertise.

Is a Builder’s Risk policy mandatory?

However, while not required by law, there are many reasons why Builder’s Risk Insurance is advisable.  As a contractor, it protects your investment.  Additionally, there’s no need for replacement costs from your own pocket. When properly insured, a client will appoint you. Some clients will insist that you have this insurance. Thus, as a homeowner, it protects your home whilst under construction.  Further, standard property coverage like homeowners insurance provides little coverage in these circumstances.

This policy covers certain property

This contractor insurance covers the building and structure constructed. It covers the equipment, supplies and materials being used in the building process. Furthermore, they’re covered whilst they are on site, at temporary storage off site, and when in transit.  Additionally, this coverage can be extended to many other things.  Examples are soft costs like marketing, temporary structures like scaffolding, the removal of debris after a loss event or decontamination of the site.

What is Covered?

A Builder’s Risk policy is highly customizable.  Thus, you can choose the loss events you include in your policy. Most policies include loss from fire, theft, vandalism and bad weather like wind or hail.  Additionally, you can add many other risks too.  For example, if your project is in an affected area, you can include earthquakes or flooding.

Speak with us for your Contractor Insurance

We are experts in Builder’s Risk Insurance. Moreover, our agents will assist you to get optimal coverage for your project at a price you can afford.  Call Builder’s Risk at 877 960 0221.