Why You Should Have Builder’s Risk Insurance


As a building contractor, you always want to make sure that your company is protected in the event of any unforeseen problems such as theft of materials or damage to a project in progress. As a construction project owner, you want to be sure that the investment you are making in your property is protected from accidents and unexpected incidents. In many cases, builder’s risk insurance is the solution to all of these problems.

What Is Builder’s Risk Insurance?

Builder’s risk insurance protects a property that is under construction or going through major renovations. A builder’s risk policy can protect against:

  • Fire
  • Theft of materials
  • Theft of equipment
  • Weather-related damage
  • Vandalism
  • Unexpected explosions

In general, a builder’s risk policy is only in effect for anywhere from three to 12 months. For larger projects, builder’s risk insurance is purchased for each part of the project to make sure the coverage does not run out before the project ends.

Why Contractors Need Builder’s Risk Insurance

A construction job site can be an unpredictable place where anything can happen. While a contractor usually enters into a project with plenty of liability insurance, there are many aspects of construction liability insurance will not cover. A construction contractor needs builder’s risk insurance to make sure that they are fully protected for each project.

Why Project Owners Need Builder’s Risk Insurance

The unpredictable nature of construction is what makes builder’s risk insurance so important for project owners. If you have existing buildings on a construction site, then you want to protect those buildings from accidents coming from the construction activity. Sometimes project owners buy specific materials they want used in their projects and builder’s risk insurance will protect those materials if they are damaged or stolen.

Why Your Business May Need Builder’s Risk Insurance

If you are having a contractor come to your business to do a remodeling or expansion project and your business does not invest in builder’s risk insurance, then you could be making a mistake. In a remodeling project, any parts of your building you are trying to preserve could be damaged during the construction process. With builder’s risk insurance in place, your entire building is protected from those unexpected events that could turn into financial disasters.

What Type Of Builder’s Risk Insurance Should You Get?

Our business consultants are experts in putting together builder’s risk insurance policies that cover your exact needs. You should never purchase a generic risk policy. You should only utilize a policy that has been crafted by an expert who understands your construction or remodeling situation.

Builder’s risk insurance is one of those protections that business owners who are not in the construction field do not give a lot of thought to. But if you are having construction work done for your company or if you are having your business location remodeled, then builder’s risk insurance could help you avoid financial disaster if something goes wrong.