Builder’s Risk Insurance
Construction projects can present complex insurance issues.
Builder’s Risk coverage is a type of property insurance specifically designed to cover property during the course of construction, including renovation and repair.
Why do you need it?
There are additional risks and responsibilities inherent in renovations and repairs that a typical property policy is not designed to cover. For example, if someone steals contractors’ equipment from the job site or if construction materials are damaged, you could be liable for the loss if you do not have builder’s risk coverage.
Who should be covered?
Typically, the coverage is 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, contractor, subcontractors, the financial institution funding the project, and, in some cases, the architects and engineers.
Careful planning is the foundation for a smooth construction project, which includes the right exposure coverages. Many businesses choose to transfer or accept risk through contracts, purchase orders, and lease agreements. However, not all contracts or endorsements are created equal. You need a partner who understands your business and can knowledgeably help you with the builder’s risk policy language to meet your individual needs