A Builder’s Risk Insurance policy is specifically designed coverage to protect structures and buildings during the course of construction. This includes those that are being built from ground up, renovated or remodeled.
With Builder’s Risk, your contractor business is protected not only against financial loss from property damage on a construction site, but also the soft costs that can eat into your profits.
Profit is what is left over after paying all of the bills and costs associated with your construction project. Your profit is threatened by 3 unexpected causes. Are you prepared for any or all of these dangers?
Insurance is designed to protect you from the impact of financial loss. The result of not protecting your construction business from property damage can be so great that you could lose your business, your livelihood or your home.
For instance, your contractor profits can be negatively impacted by any of these:
As with most insurance coverage, a Builder’s Risk Insurance policy comes with several coverage options. You can purchase a standard policy or you can purchase additional coverage that fits the risk profile. Generally, Builder’s Risk coverage includes:
Because no two construction projects are the same, no two policies should provide the same coverage. Here are some areas of coverage might be added:
So your Builder’s Risk can include coverage for construction materials and equipment added to the property, like elevators and HVAC systems. It can also provide coverage for the replacement or re-erection of temporary structures such as scaffolding or fencing.
A delay in the construction project can result in mounting soft costs. Be sure to evaluate the risk of incurring the following, and to include the ones you need into your coverage.
A contractor faces threats to profit on every construction project. This goes beyond the financial losses that come from third-party claims. Find out how to protect your contractor business’s profits. Speak with the agents at Farmer Brown insurance. Call (888) 973-0016