Risk Management for Builders is a daily worry for anyone in the construction industry. If something unexpected happens, it can deliver a knockout blow to your project or your company. Is your construction business strong enough to withstand a financial crisis that comes with it?
Here is a rundown of the possible risks that a builder has to deal with:
The National Equipment Register says that the money that the construction industry loses to construction site theft amounts to a whopping $1 billion. As a professional contractor you rely on your tools to get the job done. If they’re stolen, you have both the expense of replacing them, and the expense of penalties for any project delays whilst you are doing so. The question is, can you get insurance that covers theft of your tools?
Builder’s Risk Insurance covers the equipment, tools and materials that you have transported to the site for installation or you have yet to transport to the job-site.
Insurance policies pay for damages according to your coverage limit. Your construction budget is the best source to determine the coverage limit. It usually reflects the total value of the structure upon completion, the cost of labor, and the cost of all materials used in construction.
One important thing is that coverage limit does not include the value of the land. Your Builder’s Risk Insurance policy is usually written in the range of three months, six months, and 12 months. If the project remains incomplete upon deadline of the first policy term, you can get an extension.
Builder’s Risk Insurance carries standard exclusions such as water damage, weather damage, earthquake, government action and mechanical breakdown, but this list is not conclusive.
On average, a Builder’s Risk Insurance policy costs one to four percent of the cost of construction, but it changes according to the exclusions and coverage limit your policy has. Project location and construction material are generally the two major factors to determine the cost.
Get information and advice on risk management for builders from Builder’s Risk Insurance. Our insurance company is one of the largest and the most reliable online. Call us at (877) 960-0221. We are here to help.