As a builder, your clients expect you to deliver a facility that is safe, complete and built in accordance with plans and specifications. Your clients also expect to have the appropriate insurance to cover you work at every phase of your projects. It’s incumbent upon you to make sure that your financial interests are protected for your projects that are under construction. Contractually, these projects are yours until they are complete and accepted for use by the client. Do you have a builder’s risk policy that covers projects in progress?
What Is Builder’s Risk Coverage?
Builder’s risk insurance is specifically designed to cover your interests for projects that under construction. It covers the equipment, property value and building materials while a particular facility is being built. It keeps you covered until the owner or client signs off on the project for acceptance. Usually builder’s risk coverages include the following:
- Lightning strikes and hail
- Theft and vandalism
- Collisions with vehicles or aircraft
Most coverages can be extended to temporary construction elements such as scaffolding and debris removal. It’s important to know what your policy includes and where you might need special protections that are tailored to your work. These policies don’t usually cover equipment and property owned by entities besides the insured company.
Doesn’t General Liability Insurance Suffice?
While you need general liability protection to address bodily injuries and other types of property damage, it won’t cover your tools, equipment and the property under the construction. Talk with your insurer to make sure that your entire business is adequately protected.