Builder’s Risk Coverage: Why Do You Need It?
Overwhelmed by the complex insurance issues that construction projects endure? Are you asking yourself questions like what types of construction insurance do I actually need? Well, one is for certain: Builders Risk Coverage.
About Builder’s Risk Coverage
Builder’s Risk is a type of property insurance specifically designed to cover property during the course of construction, including renovation and repair. You need it because there are risks associated in this type of work that a typical property policy is not designed to cover. For example, if someone steals your construction equipment or materials, you could be liable for the loss if you are uninsured.
This coverage is usually purchased by either the property owner or contractor. Regardless of who purchases the coverage, all parties that have property involved in the project should be named in the policy. This may include the owner, contractors and subcontractors. It can even include the financial institution funding the project.
Builder’s Risk coverage only deals with the property, and does not include coverage for work related injuries. For any mishaps that occur on the job, you should rely on liability and workers’ compensation policies for coverage.
One thing to be careful about when purchasing Builder’s Risk coverage is the policy period. Many people are confused about when the coverage begins and ends. It is important to keep in mind commencement of coverage. Most contracts require that insurance be provided the duration of the contract period. For more questions or concerns about Builder’s Risk coverage, contact us today.