What Kind Of Building Insurance Is Best For Your Contractor Company?

Building Insurance coverage protects your project from risk. During the construction itself, there is the risk of damage due to severe weather. Fire, vandalism, theft, damage to equipment and materials are other risks.  Moreover, your business may not be able to shoulder all these risk outcomes, but your Builder’s Risk insurance can.

With Builder’s Risk, you pay between 1% and 4% of the value of the construction project.  Hence, this small outlay affords you peace of mind for almost any eventuality. In this article, let’s take a closer look at Builder’s Risk Insurance and who it is for.

Who Needs Builder’s Risk Insurance?

A contractor acting in their own capacity as a general contractor benefits from Builder’s Risk insurance. If the project owner has not taken out this cover, it is up to you as a general contractor to do so. Moreover, you must be the first insured in the policy document to get benefits or payouts.

Roofing, painting, and framing contractors working with a project owner should also have Builder’s Risk insurance. As a result, damages incurred in the course of construction will be on you. If you are working with a general contractor as a sub-contractor, make sure you are one of the insured in the GC’s policy.

Building Insurance Cover Know-How

Being fully informed about Builder’s Risk can help you make sure your business has coverage at the right cost.

7 things You Need To Know About Building Insurance:

1. Your Builder’s Risk policy lasts 6-12 months on average. This is the standard duration it takes to complete a construction project. For larger projects, your insurance agent can provide further options.  Furthermore, adding buildings on the policy as the construction comes on board, and taking them off on completion.
2. You can get an extension on your policy coverage duration if the initial duration of 6 or 12 months is exceeded. Accordingly, you need to discuss this with your insurance provider. In the event that the duration exceeds 2 years, it may be a little more challenging to get an extension.
3. In the event of project expansion, you can revise your policy to cover the scope of the new project. You will need to discuss the terms with your insurance provider.
4. As a general rule, no reimbursements are made on policy cancellations.
5. In case of losses, the payouts or benefits go out to the first insured as named in the policy. This may be you, as the general contractor, or your mortgage company/bank.
6. As soon as the construction project is deemed completed, you will need a new, longer-term policy is in place. As a result, completion of construction means your Builder’s Risk coverage will become null and void.
7. Builder’s Risk may offer compensation for soft costs associated with rebuilding or repairs. These are costs related to architectural, engineering, financing and legal fees. Therefore, discuss with your insurance provider whether these are included or excluded in your policy.

Building Insurance Advice From The Experts

You can benefit from professional guidance on your insurable interests today. Our experienced agents are available to talk you through selecting the best Building Insurance for your construction business. At Buildersrisk.net we take the pain out of getting your construction business properly covered.  Furthermore, we will provide a quote to you within a few hours. Talk to us today on 887 960 0221 for a free Builder’s Risk insurance quote.