The first thing to know about these building insurance policies is that there’s a difference in the types of construction projects that they each cover. The overlap between these two policies can be confusing for any contractor.
Your insurance company may not have you about the benefits of Inland Marine insurance vs Builder’s Risk insurance. In this case it can be difficult to decide between the two.
In this article we’ll look at both Builder’s Risk and Inland Marine and how they fit into your building insurance program.
Builder’s Risk offers much more extensive coverage, but only for the duration of a project. For example, whilst both of these building insurance policies cover theft of equipment, Builder’s Risk is for tools and equipment used on that particular job.
Inland Marine is a floater policy and goes where you go, irrespective of the building project. Inland Marine is therefore vital for contractors who work on several projects at a time and move equipment and tools back and forth.
While both Inland Marine Insurance and Builder’s Risk protects your materials while they are in transit, neither give you coverage for vehicles transporting your tools, equipment or materials. You’ll need commercial auto insurance for this.
This is for equipment and tools that you transport from one location to another.
This includes tools and equipment that you keep at a warehouse or temporary storage facility.
However, Builder’s Risk only offers coverage for the tools and equipment that are used on the particular project that is covered by the policy. Inland Marine covers your tools on a day-to-day basis. A Builder’s Risk policy covers particular short-term or long-term construction projects.
Your Contractors General Liability covers your business from third party claims. For example, if your client or a visitor to your site is harmed when tripping over materials on your construction site. They may sue your construction company for bodily injury.
Neither Builder’s Risk or Inland Marine protect you from these claims. However, it is mandatory for contractors to have liability insurance, you will not be looking at either of these policies to have this benefit.
In addition to protection for tools, equipment and materials, Builder’s Risk Insurance protects your ground up construction, renovation or remodeling project for property replacement and profits.
Replacement cost coverage equal to the value of the property lost. The importance of this benefit is self-explanatory, right?
Contractors can be reimbursed for a percentage of profit earned as of the date of the loss.
If you are still confused about whether you should buy both or just one, give our agents a call. We are building insurance specialists and will discuss your insurance needs before advising you. Call Builder’s Risk agents at 877 960 0221.