Builders Risk Insurance
As a commercial contractor, having the right insurance coverage is essential, not just for your office or equipment, but also for the materials and property at your job sites. That’s where builders risk insurance comes in. This specialized coverage helps protect your construction projects from unexpected property damage.
What is Builders Risk Insurance?
Builders risk insurance is a type of property insurance specifically for construction projects. As a contractor, you’re responsible for delivering projects on time and within budget, but accidents and unforeseen events can cause costly delays. This coverage helps protect you and other stakeholders (like property owners, architects and subcontractors) from financial loss due to property damage during construction.
What Does Builders Risk Insurance Cover?
Builders risk insurance can offer essential coverage for property and materials involved in a construction project. It typically protects against damage caused by events such as fire, theft, vandalism and specific weather-related incidents while the project is underway. This insurance can cover the structure under construction and onsite materials and equipment before they are permanently installed. Depending on the policy, it may also include coverage for temporary structures like scaffolding, as well as soft costs such as lost income or additional expenses due to project delays. In some cases, builders risk insurance can be extended to include liability protection for injuries or property damage affecting third parties on the job site. Overall, it’s a vital safeguard for contractors, property owners and other stakeholders invested in a construction project.
Who Needs Builders Risk Insurance?
This coverage is valuable for the following:
- General contractors
- Subcontractors
- Property owners managing their own builds
- Developers and investors
If you’re involved in a construction project, having this insurance in place before work begins is wise. In fact, many contracts require it as a condition before the project starts.
How Much Does Builders Risk Insurance Cost?
The cost of builders risk insurance can be influenced by the following:
- Project size and scope
- Location
- Duration
- Type of construction
Learn More
For builders risk insurance near you, contact Dean Mofidi Insurance Services.