This article is about the benefits of Builder’s Risk coverage. It is also called Course of Construction insurance because it is project-specific and is valid for the duration of the construction.
A project is assumed under construction the moment you purchase first supplies for it. Once you transfer your materials, supplies, and equipment to the site after getting a certificate of occupancy, it is considered an official project inauguration.
According to the Ponemon Institute reports, 68% business leaders miscalculate the impacts of business threats. When we talk about the construction sector, 53% of construction businesses end their journey within five years due to poor planning. The facts discussed above are enough to understand that the booming construction businesses calculate their projects’ risk accurately and tackle them with the best possible measures.
The measures for risk management of a project are decided before you start purchasing project goods. Foolproof risk planning covers financial, environmental, socio-economic, and construction-related risks. Suppose, you are about to start working on a project that is located on the outskirts of a city. The imminent chances of theft and vandalism pose a consistent risk to your project. However, a security wall around the project and insurance cover can help you curb these risks.
Builder’s Risk Insurance is high priority insurance cover that provides additional financial protection for a project.
Builder’s risk is made a part of the risk management strategy in the early stages of a project for a decided time limit.
Generally, Builder’s Risk insurance provides financial coverage to a project’s following aspects.
Builder’s Risk insurance is an essential tool for the timely finish of projects because it provides quick financing for the anticipated events. There are high chances of injury, damage, and delay during a construction project due to natural disasters. However, too many late finished projects harm the goodwill and reputation of a construction company. According to a survey report, 9/10 B2B clients do not feel safe to do business with a company that has bad reviews or a bad reputation. Project delays could lead to lost credibility, and lost projects.
Find out how Builder’s Risk insurance will protect your project and your business. Call 877 960 0221