The biggest benefit provided by building under construction insurance is hardly ever spoken about. Even your insurance company may not have mentioned it. It’s so simple, that once you know about it you won’t believe you didn’t take it into account when buying your insurance.
Some contractors don’t want to invest in insurance, even though they work in one of the most dangerous industries. But, of course, even they have to invest in General Liability and Workers Compensation because this is mandated by the law in most states.
But there’s more value to your contractor coverage than protecting your business from potential financial loss resulting from property damage or personal injury claims.
Your contractor insurance protects your business reputation.
Your reputation in the industry can make or break your business. Your good business reputation is important for 2 reasons. It helps you do better in business, and it helps you get a better price when you sell the business.
This doesn’t mean that things won’t happen on site that will threaten the project – they always do. It means that your clients are confident that you will be able to fix them.
To keep good faith, your contractor business must live up to your reputation. Not many contractors have the financial resources to complete projects, or even stay in business, when faced by liability claims for property damage or bodily injury. Would your business survive a lawsuit demanding hundreds of thousands in damages?
This is where insurance plays its part in protecting your business reputation. With the right coverage, your projects will be able to continue to work and grow.
You will have General Liability insurance to protect your business from financial losses due to third party claims. In addition, this coverage protects your business against certain claims of libel, slander, violation of the right of privacy and more. For instance, you use pictures of a client’s house in your promotional materials without their consent. If they sue your business, you have coverage.
But, are all your bases covered?
General liability insurance doesn’t cover all the things that can go wrong during your project. The gaps in coverage can be enough to put you into a difficult position. For instance, you may not be able to continue work if your tools or building materials have been stolen.
Building under construction insurance is called Builder’s Risk Insurance or Course of Construction coverage. It covers the expensive materials and equipment that will be used in the course of the project. With Builder’s Risk Insurance these items are covered while they are being stored or in transit to the job-site.
Your business reputation is your best asset. It tells new clients that your contracting business can be trusted to do a good job. Your insurance coverage gives you the confidence that this precious reputation will be protected. If things do go wrong, your insurance gives you the power to complete the project. Be sure to invest in building under construction insurance to protect your tools and materials.
For more information about protecting your business reputation, contact Builder’s Risk Insurance 877 960 0221