What didn’t they tell you about your builder’s hazard insurance policy? | brand voice


Do you know enough to invest in a builder’s liability insurance policy? Before purchasing this coverage for your construction project, you need to ask yourself some questions. These questions can mean the difference between getting paid or suffering financial losses if something goes wrong with the project.

First, let’s look at what this blanket is designed to do.

What is a builder’s insurance policy?

Builder’s Risk has another name: Construction Insurance Course. It is an index of the protection offered by the cover. This policy protects your construction company against financial loss resulting from damage to structures or buildings during construction. In other words, it extends from the beginning of the project to the end.

1. Does Builder’s Risk cover all property damage?

Builder’s Risk protects your business against financial loss resulting from property damage on a construction site, as well as incidental costs that can eat away at your profits. However, it does not cover third party claims, which is why you have general liability insurance.

For example, if the result of your work is damage to a customer or visitor’s vehicle, your general liability policy will cover the claim they bring for property damage. But, let’s say your building under construction is damaged by vandals. Your general liability does not provide protection in this respect.

2. Are all Builder’s Risk policies the same?

So there are things that builder’s risk insurance generally provides coverage for these other types of insurance. This is not the end. When looking for property damage protection to the structure you’re building, don’t assume that every job site hazard insurance policy offers the same coverage.

As with any insurance, you will need to specify the items and customize the policy to cover the risks that this particular project is likely to face. And, as we all know, no two construction projects are the same.

3. Does the Builder’s Risk cover all your projects?

No. The construction risk insurance policy is specifically designed to protect structures and buildings that are constructed from scratch, renovated or remodeled. However, each project requires its own policy.

Unlike your inland navy which offers day-to-day coverage, your builders insurance is short-term. It only covers the duration of the project, and only for the period stipulated in your contract. If your project continues longer than expected, your insurance period can and should be extended.

Construction site insurance: find out before you buy

A builder’s risk insurance policy is like any other in that you need to know what you are buying. Read the fine print. But, if you don’t know what you’re looking for, you won’t know what’s missing, right?

Ask your insurance advisor to explain the conditions to you. Our Contractors Liability Insurance Company agents are here to answer your questions. Before you start your next construction job, call us at 866-225-1950

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