In 2019, KPMG reported that 78% of engineering and construction companies believe project risks are rising. It’s clear Construction Insurance is more important than ever. At just 1-5% of project costs, you probably carry Builder’s Risk insurance already. But have you considered adapting it to get the best value and coverage? In this article, let’s look at 5 reasons to customize your Builder’s Risk policy.
Basic Builder’s Risk Construction Insurance covers wind, rain, hail and lightning. But your location may leave you disproportionately open to weather risks beyond those.
California and Texas are the top two employers for construction workers, and both face earthquake threats. Adjusted for inflation, the 1994 Northridge earthquake cost $26.4 billion dollars in losses. With all the expensive equipment and loose fittings on a construction site, it’s easy to imagine how destructive this could be for yours.
Florida is third for construction workers and has the most summer rainfall of any state. With average national rain up by 90% since 1950, flooding and water buildup are more concerning than ever. Luckily, you can customize your Builder’s Risk to protect your site from earthquake, flood and water buildup losses.
Property crimes like theft, vandalism and arson have thankfully dropped in the last few decades. But they still happen. With the increasing size of modern construction sites, this industry is a prime target. $1 billion is still lost to theft every year.
While Basic Builder’s Risk covers the property, you may need an extension to cover equipment, temporary structures or materials stored off-site. This is especially true if you operate in an area with a high crime rate.
Similarly, your standard Builder’s Risk policy won’t cover your property while it’s on the road. No matter how safe a driver you are, there are 16,438 crashes a day in the US. Driving is always a risk.
If you often transit expensive gear – and which contractor doesn’t – this extension is worth adding to your Construction Insurance.
Construction is an incredibly risky industry. Heavy machinery and volatile, dangerous materials mean that even small incidents can escalate into gigantic damage losses. Fires cost the industry $300 million in 2018. Their frequency is low, but the damage they do on a construction site is formidable. Fire coming into contact with building materials can create toxic waste. This becomes your responsibility to extract from the water and soil.
A pollution cleanup extension to your Construction Insurance will protect you, so you aren’t hit with a huge bill.
This gives you the gift of flexibility. You can design a zero-fat policy around your particular business. Find out more by calling Builder’s Risk on 887 960 0221.