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. Builder’s Risk Insurance is different. It is specialized coverage that only applies to construction in progress. It is also limited to certain types of construction projects.
This specialized property coverage applies to:
This insurance covers property during the building process. It starts from breaking ground to completion of the building. Once it is ready for occupation, new property coverage is required.
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.
If changes are being made to an existing building, Builder’s Risk Insurance applies. Examples of this could be adding a staircase, reinforcing foundations, or removing a load-bearing wall.
This contractor insurance is specific to a project. This means that all the participants in a project can be covered by the one policy. The policy holder could be the homeowner, the developer, the contractor, or the project owner, for example. There is a requirement that the party that purchases the policy has 2 years of experience in their field of expertise.
Builder’s Risk Insurance is not required by law, but there are many reasons why it is advisable. As a contractor it protects your investment. If a covered event occurs you will be protected. You will not need to pay replacement costs from your own pocket. A client is more likely to appoint you if you are properly insured. Some clients will insist that you have this insurance. As a homeowner it protects your home whilst under construction. Standard property coverage like homeowners insurance provides little coverage in these circumstances.
This contractor insurance covers the building and structure that is being constructed. It covers the equipment, supplies and materials being used in the building process. Typically these are covered whilst they are on site, at temporary storage off site, and when in transit. 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.
A Builder’s Risk policy is highly customizable. 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. You can add many other risks too. For example if your project is in an affected area, you can include earthquakes or flooding.
We are experts in Builder’s Risk Insurance. 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.