Basics of Builder’s Risk Insurance
Whether your contracting business is large or small, you face risks during the course of your projects. Construction insurance, or builder’s risk insurance, is designed to provide your business with protection throughout the building process. In most cases, builder’s risk insurance protects the investment you have in a construction project from loss due to fire, storm damage, theft, and vandalism.
Builder’s risk insurance covers the on-site materials and the building itself, specifically:
- Building materials (such as windows, frames, etc.)
- Equipment
- Structures during building
A standard policy will cover damage caused by a variety of incidents not related to the actual construction work, such as:
- Fire
- Lightning
- Hail
- Wind
- Theft
- Vandalism
Generally, earthquake and flood damages are not covered. For these incidents to be included in protection, endorsements can be added to coverage.
Even if you are under the impression that no incident will occur to your project, accidents happen. Any person or company with a financial interest in the construction projects needs builder’s risk coverage. If the project is being financed, the lender may require coverage and will also be a named insured under the policy.
At Nahai Insurance Services, we offer broad coverage with the ability to tailor to your needs. We understand the financial impact of work stoppages, which is why we provide builder’s risk insurance that resolves losses quickly. Contact us today to get started.
