Construction companies face a lot of different avenues of risk, some of which aren’t compatible with traditional insurance. To make things more complicated, the same company could need very different policies for total coverage from one job to the next, making costs unpredictable. When you are sorting out what policies you need and what risks are better covered by bonds, builder’s risk coverage provides a unique piece of business protection that contractors and larger builders can not afford to miss.
Major Coverage Areas
Risk insurance mostly covers damage to the site and equipment or supplies on it during the job. It’s designed to protect builders from major weather events as stipulated in individual policies, as well as more common risks like theft, vandalism, or damage due to accidents. This is especially important if your construction site is on or immediately next to a major traffic artery, as the risk of vehicle collisions with equipment or staff can be significant. Builder’s risk policies typically protect:
- Raw materials and supplies
- Vehicles on site
- Building fixtures
- Debris removal and cleanup after an event
Like most business risk policies, builder’s risk coverage has limitations that rule out many standard but unlikely events. Examples include floods, nuclear explosions, and acts of war. Otherwise, the policies are quite comprehensive. Request a quote from a provider today to learn more.