The Importance of Asset Protection
Builders risk insurance provides protection against loss or damage for any residential or commercial building under construction or renovation. Generally, the property owner, builder or general contractor will obtain this type of policy, since it often forms part of building contracts.
While this policy generally provides coverage for the physical structure, it can also include any tools, materials or equipment on the construction site. Damage due to water and vandalism can also be included, as well as any delays caused by changing laws and codes. Depending on individual needs, labor costs can be covered, as well as damage due to faulty construction or a deficient design.
Customize Your Policy
While it’s often possible to tailor policies and coverage, most do not cover potential injuries or accidents, and may also exclude flood and earthquakes. While these coverages can be added to a policy, they are typically purchased separately.
No matter the size of the company or type of construction, a builders risk insurance policy is designed to offset any potential damage or risk, and can be a valuable planning tool to guard against liability. The policy cost will be determined by the scope of work and other factors, so it’s best to do business with an established insurance company who can tailor your policy to your exact needs.