General contractors and project owners can protect their investments in a construction project during the course of construction with the right contractors insurance policy in place. With builders risk insurance, investments in time, materials, and even equipment are protected from unintended incidents which could threaten a project.
Builders Risk Insurance
There are a lot of things that could happen while working on a construction project. Halfway through a remodel, an unexpected fire destroys the completed work. A flash storm damages the materials kept on a project site. The tools and equipment stored on-site are stolen and completed work is vandalized. In all of these instances, a business owner will face a loss. And those losses may not be covered by a traditional property insurance policy, either.
Builders risk insurance protects business owners from the incidents that can’t be planned for, and helps recoup losses when the unexpected strikes.
What Does Builders Risk Cover?
When there is a builders risk policy covering a construction project, the insured is covered against losses which may include:
- Theft of tools and equipment onsite
- Fire damage to a structure in progress
- Structural damage due to weather events
- Vandalism to a structure in progress
Builders risk insurance reimburses a business for losses if thieves steal copper wire or tools from the project site. It covers the cost to repair or rebuild if a fire or an extreme storm damages the project. Builders risk may also cover the cost of cleanup and clearing away debris so everyone can get back to work without delay.
Business owners invest a lot into a project to see it through to the end. Builders risk protects their investment so they won’t pay the price for an unexpected loss which occurs before they've completed the work.