6 Things to Know When Choosing Builder’s Risk Insurance

Understanding Builder’s Risk Insurance is one of the aspects of securing your construction site. But is this coverage standard from one construction site to another? Are all Builder’s Risk Insurance policies the same? Not quite. Since constructions and renovations differ in scope, it stands to reason that every Builder’s Risk insurance policy is different. 

As a general contractor, it’s important to pick the right insurance coverage so you can reduce your risk. Here are six things to know for choosing and understanding Builder’s Risk Insurance. 

1. Opt for Experience 

An experienced insurance agent is worth their weight in gold when it comes to understanding Builder’s Risk Insurance. They will help you choose the right cover for you and your business. Every construction site is unique and comes with its own set of risks.  Our insurance agents are experienced in the different areas, the law, and the types of risks – such as weather or vandalism. 

Your insurance agent will advise you on the best Builder’s Risk Insurance policy that provides the best protection for you, your employees, and your site. 

2. Know Your Risks Before You Buy Insurance 

To get the right insurance cover, you should first carry out an inventory of the materials, equipment and labor to be used on the building site. This inventory needs to factor in materials and equipment which are both in-transit and in off-site storage at the moment. Once you have an idea of the value of this inventory, you can opt to buy Builder’s Risk Insurance for protection of your property. Another valid choice is to look at the biggest threats to your inventory and narrow your policy to cover only these risks. Whatever you opt for, make sure your coverage is the best for you.  Understanding Builder’s Risk Insurance will help you to avoid nasty surprises. 

3. When Does Your Insurance Cover Commence? 

In most cases, Builder’s Risk Insurance coverage begins as soon as you sign the contract. However, there may be some provisions in the policy that restrict the coverage until a specific event occurs – such as the laying of the foundation. For such policies, it’s best to talk it through with your agent who will help you understand the event or the date at which the coverage is triggered. 

4. When Does Your Cover End? 

Again, this is an important aspect to understanding Builder’s Risk Insurance. Since this insurance cover is of a temporary nature, you need to be aware of when it ends. This way you can make sure all risks have been covered and completed. Most policies state the conditions under which the policy ends. Some of these are; expiry of the contract, occupation of the building, or cancellation of the contract.  Property insurance needs to kick in as soon as the Builder’s Risk Insurance ends. 

5. Is defective work covered? 

One of the key exclusions in most Builders Risk policies includes correction of defective work by subcontractors on the site. To manage your risk from this, you have to get an ensuing loss provision. With this provision, other later work that results in damage from previous faulty work is covered under your policy. Understanding Builder’s Risk Insurance will help make sure you know the extent of this provision.  This way, you won’t be caught unaware if mishaps from faulty work happen at the site. 

6. Have you gone through your Builder’s Risk insurance policy? 

A good insurance agent will help you go through the final draft of your policy. Make sure you read it carefully and understand the extent of all the provisions. When doing the final check, you should focus on the coverage, the exclusions, and the conditions under cover. You have to know what will be covered with your policy and what won’t.

Understanding Builder’s Risk Insurance – Expert Advice

Now that construction is all set to start on your site, it’s time to call in the experts and get your Builder’s Risk Insurance policy set up. Call 887 960 0221 today!