Why Is Builders Risk Insurance Important?
As an employer in the construction industry, you must understand the significant risks and exposures present from groundbreaking to project completion. Even if your firm consists of experienced employees who operate with diligence and caution, preventing a loss during construction may not be possible. Given the potentially devastating financial ramifications of even a single unforeseen event, your business should prioritize robust loss control measures, including an adequate builders risk insurance policy.
What Is Builders Risk Insurance?
Builders risk insurance should be considered an essential form of financial protection for any organization involved in constructing, renovating or modifying structures. This coverage, also known as course of construction insurance, can provide critical financial security for buildings under construction, including those being built from the ground up and existing structures being renovated. By purchasing and maintaining a suitable builders risk insurance policy, your firm may be able to access crucial financial assistance in response to covered perils that might otherwise incur catastrophic out-of-pocket costs.
Why Do I Need Builders Risk Insurance?
The right builders risk insurance policy can cast an invaluable safety net across many common perils that might otherwise leave your company without the means to recover from accidents and errors financially. Although policy details may vary, builders risk coverage can typically respond with financial aid after the following:
In response to the aforementioned perils, builders risk insurance can provide compensation to help repair or replace the following:
- Buildings under construction
- Temporary structures
- Equipment and tools
- Supplies and materials
- Key documents (e.g., blueprints, specifications)
In addition to helping your business recoup covered losses involving physical property, builders risk coverage may also provide compensation for soft costs indirectly related to an incident, including lost revenue, tax payments and additional interest in loans.
Get the Right Coverage
Given the value and importance of the property financially protected by builders risk insurance, adequate coverage should be considered a top priority. Without a suitable policy, even a single incident could leave your company without the means to meet deadlines or even complete a project.
We’re here to help. The dedicated staff at James L. Smith Insurance works with dozens of insurance companies and will work closely with your business to analyze your circumstances, explore available options and compose optimal builders risk coverage. Visit our website or call 412-531-3111 to get started today.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.
Categories: Builders Risk Insurance