The Difference between Builder’s Risk and Inland Marine

It’s easy to confuse insurance policies and believe they offer more protection than they do. Contractors are often left confused about whether their Construction Project Coverage is sufficient. Is Builder’s Risk enough or will more insurance be required? 

Do you know the differences between Builder’s Risk and Inland Marine Insurance?

What Your Builder’s Risk Policy Covers

A Builder’s Risk Policy Covers a building under construction and going through renovation against a variety of scenarios, including:

1. Theft –Tools are easy targets for thieves; when they go missing or are stolen, Builder’s Risk will cover the costs to replace them. 
2. Natural Disasters – An accidental fire caused through no fault of your own or from faulty workmanship, is covered with most insurance policies unless they’re deemed to be arson.  In an industry where almost 28% of all insurance claims are because of wind damage, it’s good to know what your Builder’s Risk Policy Covers.
3. Vandalism  

Also, this Insurance Policy will cover building damage, tools and materials, equipment, and supplies on the building site.

Typically, these policies last anywhere between three and twelve months; with the possibility of extending beyond that time. Builder’s Risk protects you in a variety of ways and is particularly, essential for equipment and material coverage. 

Rescued by Builder’s Risk Insurance

For example, thieves remove all of the copper pipes and wiring installed on the property, along with additional supplies. This happens frequently throughout the industry as they’re high-value items. Also, they’re extremely costly for you to replace. It’s a common occurrence, especially with medical facilities under construction.

However, your Builder’s Risk Policy would cover stolen materials, even if they weren’t installed, as long as they were on-site at the time of the theft. You’re covered against those losses and wouldn’t be left out-of-pocket. 

What Your Inland Marine Insurance Covers

This type of insurance aims to protect your tools during transit. Your Inland Insurance Policy will cover tools and equipment, materials, supplies, and everything else you’ll need to work on a construction project. However, this only covers equipment and tools during transportation, while on the road. It doesn’t cover the actual transport vehicle or when the tools are stored on site. 

Keep working with Inland Marine

For example, the vehicle your materials are being carried in hits an icy patch on the road and flips over into a ditch. Only half of your materials, tools, and equipment can be salvaged. The insurance policy will cover the items damaged or destroyed by the accident because it happened during transit. It’ll also ensure you’re able to keep working.  

Builder’s Risk or Inland Marine? 

Inland Insurance and Builder’s Risk differ slightly. As said, Inland Marine covers equipment during transportation only, whereas a Builder’s Risk Policy Covers at the building site. Also, Builder’s Risk is thought of as an extension of inland coverage. While you need Builder’s Risk to cover equipment and tools at the construction site, it’s necessary to have cover during transit as well. You’ll need both policies.

Don’t take a chance!

According to the Bureau of Labor Statistics, over 11 million people work in the construction industry. You face a variety of insurance risks. Having sufficient Construction Project Coverage is essential. A Builder’s Risk Policy Covers a host of issues and you would do well to use it in conjunction with Inland Marine Coverage.  If you’d like to find out more about Inland or Builder’s Risk Insurance, contact Builder’s Risk or call us at (877) 960-0221 for a 5-minute quote.