How Builder’s Risk Insurance Protects Your Project
Category : Insurance Coverage
If you are a contractor or a builder, you are likely well aware of the many hazards of the trade. Things can go wrong even for skilled contractors, and unexpected hazards do arise in the course of projects. Ensuring your client has a comprehensive builders risk coverage policy will help ensure building projects are protected in the “under construction” phase, and help you safely bring a project to completion.
What Does Builders Risk Insurance Cover?
Builders risk insurance is generally carried by a property owner, but can in some cases be carried by the contractor working on a given property. Essentially, builders risk coverage protects the physical project being worked on.
This distinction is important: builders risk insurance may cover materials, supplies, equipment, and other structural components of a project that is in progress. However, it will typically not cover workers or contractors themselves, nor “adjacent” risks, like transporting workers or supplies to a building site. Consequently, this type of insurance is only one component of a comprehensive insurance package that protects projects under construction.
As a builder, it may be in both your interest and your client’s interest to carry builders risk insurance. Speaking to an experienced insurer to ensure you are well-protected will help your project come quickly and safely to fruition.