If your business is part of the construction industry, then it is going to need builders risk insurance. This coverage is designed specifically to address the specialty risks of construction in progress, and addresses the fact that you have an insurable interest in property outside your company premises.
With the protection offered by builders risk coverage, you will have the guarantee that you will be able to insure projects under construction. However, this coverage is more encompassing in the fact that it will offer coverage for materials even before construction begins. Here’s how it works.
Why Construction Companies Need Builders Risk Coverage
When your company undertakes a building project, you want to see it through to completion without any problems along the way. However, there are plenty of situations that might cause a problem, and that could cause both you and your client a considerable financial setback. For instance:
A fire might break out in a partially constructed building and destroy it.
A criminal could enter your construction site and vandalize it or steal materials.
Severe weather could strike at any time, causing you to face construction delays.
When it comes to construction, any lost property or time equals lost money. Therefore, to get assistance with these losses when they occur unexpectedly, you can turn to builders risk insurance. This coverage exists because of the costs risks and vulnerability associated with construction. It will help your company pick up the pieces, replace lost property and get your project back on track without a significant monetary loss.
Get Coverage Before You Start Construction
You don’t need builders risk coverage only when you break ground on a project; you need to have it in place from the moment you begin to execute the plan.
Builders risk coverage is a type of inland marine insurance, which covers property assets when they are transported off of a business’s property. Therefore, as soon as you acquire the materials for the project and move them to the site, they will need protection of a builders risk policy.
Both the structures under construction and the materials left onsite, but not yet installed, will continue to have protection throughout the course of the project. As a result, you are guaranteed to have coverage even for partial damage on your worksite, which could nonetheless lead to a significant recovery cost. Indeed, many clients will require you have this coverage from the moment the project starts, which is long before the first stake is driven into the ground.
Don’t hesitate to work with one of our agents to learn more about how to optimize your builders risk policy to your advantage. Given that all construction projects can vary, it’s important to make sure that each will always have the right security in place.