Reasons to get Builders Risk Insurance

Reasons to get Builders Risk Insurance

There are many types of business insurance tailored to the construction and remodeling industries. However, there’s one key type of coverage that’s not included in a business owner’s policy. This is builder’s risk insurance. Here are three reasons why you should carry this type of additional insurance. What could it mean in the event of a loss? 

Reason #1: It Covers Projects Under Construction Against the Unforeseen 

The whole point of business insurance is to protect your company against unforeseen circumstances. Builder’s risk insurance takes this a step further. It protects projects under construction. It might insure them against covered losses such as theft, fire, poor weather, and more. This includes the current state of the structure—whether a new build or in remodel. It can also include associated supplies on the job site. 

The reason that this matters is that building supplies are expensive. Imagine a scenario where a load of lumber at a build site becomes damaged in a fire caused by a lightning strike. There was nothing you could do to prevent the loss from happening. Yet, your company would still be out the funds to replace the supplies. In the end, this could cause the whole project to come in over budget and eat away at your bottom line. This is where having builder’s risk insurance becomes important. 

Reason #2: It Might Be a Requirement 

Builder’s risk insurance is optional coverage in many cases. However, it might be a requirement in some cases. For example, most construction firms that work on government projects need to have this type of coverage to even enter a bid. 

Why? Large corporations and government entities want to be sure you’re protected against anything that happens during construction. By requiring this as part of the bid, these groups ensure they hire the right company for the job. They also make sure they can protect themselves against potential cost losses also. 

Reason #3: Your Customers Want You to Have Proper Business Insurance 

To put it simply, your customers want you to have proper business insurance. For contractors, this includes builder’s risk coverage. By thinking ahead and having policies in place, those interested in hiring your contracting firm are able to tell you’re serious about your company. They will know that you have a great interest in making sure all aspects of operation go smoothly. They can rest assured that if something unfortunate happens, your coverage will get the project back on track. 

Are you ready to learn more about business insurance and how a builder’s risk policy could help your business? Contact us today for details.