Builders Risk Protection – Why You Need It

sillouhette of two men a construction platform.

Builders risk is an essential form of insurance for any construction project. It protects against the loss or damage of materials, labor, and equipment during the construction process. Without builders risk protection, contractors and developers could face costly financial losses in the event of a disaster or accident. In this blog post, we’ll discuss why it’s so important to get builders risk protection for your construction project.

Importance and Laws

Builders risk insurance is the best type of coverage for construction companies.

The importance of getting builders risk protection cannot be overstated. Building a home or other structure is an expensive and complex endeavor, so it’s important to protect yourself from potential risks and losses with the right insurance coverage. 

When you are engaging in a construction project, you must understand that various laws come into play regarding builders’ risk protection. Depending on where your construction project is located, there may be different regulations and requirements that you must abide by. Be sure to consult with an attorney or other professional to make sure you are in compliance with all local, state, and federal laws. 

Potential Risks and Coverage

Potential risks for construction projects are numerous and varied. A few of the most common include fire damage, storm damage, theft, vandalism, accidents on the job site, and losses due to unanticipated delays. In some cases, the risk of liability due to negligence or misconduct can also be present. Builders risk insurance can provide you with financial protection in the event of any of these losses or damages.

Builders risk insurance typically covers the physical structure of the property being built as well as materials, fixtures, and equipment used in its construction. It may also cover liability related to the construction project. Be sure to check with your insurance provider to determine exactly what type of coverage is available and how much it will cost.

Builders risk protection is an important part of any construction project and one that shouldn’t be taken lightly. Having the right coverage in place can give you peace of mind knowing that your investment is protected from unexpected risks and losses.

Why You Need Builders Risk Protection

sillouhette of two men a construction platform.

After finally seeing your new home, office, or general property fully constructed, it’s a natural impulse to want to protect it from the elements with insurance – you don’t want something as simple as a flash flood to ruin what you’ve waited so long for.

But what about insurance for your property during its construction, as well?

Construction Risks and the Importance of Builders Risk Insurance

Although people tend to neglect insurance for their property during its construction, the reality is that properties are often more susceptible to damage during construction.

For example, a lack of complete coverings and security features makes properties being constructed much more susceptible to weather damage from wind, hail, or rain, as well as theft and vandalism.

This is why if you want to increase the chances of your property coming out exactly the way you imagined and save money in repair, replacement, and labor costs along the way, protecting it during construction with a Builders Risk policy is a very smart move.

A construction project filled with half built red platforms.
Given the in-progress nature of structures around construction sites, they’re much more susceptible to potentially dangerous elements like weather.

This type of policy can provide the following types of coverage:

  • Structural Coverage: Protects the buildings and other structures associated with the project.
  • General Liability: Protects the at-risk people working on the project.
  • Equipment & Materials Coverage: Protects the equipment and materials being used for construction.

Of course, these are simply the most common forms of coverage that go into most builders risk policies; what ultimately ends up being covered in your policy will depend on the needs and features of your specific project.

In some cases, you may need more comprehensive coverage, such as that found in contractor insurance or construction insurance.

Who Should Get Builders Risk Insurance?

Because of how many moving parts are typically involved in a construction project, it’s very normal for more than one name to be on a Builders Risk policy.

For example, while it’s most common for Builders Risk insurance to be taken out by those funding or managing construction, it’s also just as common for landowners, architects, engineers, and any other specialized professionals involved with the project to sign their names as well.

Getting Set Up with the Right Coverage

There’s no such thing as a one-size-fits-all Builders Risk policy. That is why it’s so important to prioritize working with insurance companies that understand not just how to protect construction properties, but that have enough expertise to be able to provide a tailor-made solution to your specific coverage needs.

Fortunately, these are exactly the types of policies that Prince Insurance Group can help you with.

To learn more about getting the perfect Builders Risk policy from professionals you can trust, contact Prince Insurance Group today.