Business Builders Risk Insurance

What Is A Builder's Risk Policy? 

Business Builders Risk Insurance provides protection for buildings and other property on site while they are under renovation, being repaired or constructing a new building for a limited amount of time.  The time of the policy is provided by the contractor on how lengthy the start-to-finish process will be and the value of the property, once completed. This also helps ensure the construction will be completed on time.

Extra Layer

Adding this protection when repairing, adding a renovation or working on new construction gives the contractor a much needed extra layer of insurance protection.  If a Builder's Risk insurance policy is overlooked by contactors, they are leaving themselves exposed and at a disadvantage, particularly if the construction is not completed on time.  

Examples of this include:

  • theft of tools or equipment left on site
  • fire
  • lightening
  • hail
  • explosions
  • vandalism
  • Acts of God

Without their equipment or supplies, this could be detrimental to the contractor financially, preventing them from completing the job and possibly delaying other construction projects. 


What Does It Cover? 

Most Builders Risk Insurance policies cover damage to buildings, structures, materials, equipment and supplies while under construction; however, there may be an opportunity to broaden the coverage to include other specifically stated items. 

  • Fixtures and machinery
  • Property in transit
  • Property, building materials and supplies stored onsite
  • Underground pipes
  • Foundations

Talk with an insurance agent to learn what extra coverages are available to customize the builder's risk policy.  Policies could vary per job.  

Other Coverages 

A Builder's Risk Insurance policy is not all the protection you need as a contractor.  This policy is specific to the construction site. 

It is valuable to your business to have a customized plan in place.  It can either be a combination or include all insurance protection plans. Talk with an insurance professional to learn what would be best for your business and budget. 

  • General Liability protects you from the risk of lawsuits, poor craftsmanship, and other liable actions
  • Inland Marine for your tools and mobile equipment
  • Property insurance for your office space and stationery equipment
  • Workers Compensation to provide healthcare for your workers when injured on the job
  • Commercial Auto insurance for your vehicles you use while on the job, or traveling to/from a job site  
  • Business Umbrella policy which extends over your other policies and gives you additional liability protection. 
  • Key-Employee Insurance helps provide the funding should an owner or high-level employee die.  It allows the business to keep going.
  • Group Benefits for Employees offers life insurance, health, vision and dental for owners and employees at reasonable rates vs if they had to purchase separately.

After The Project Is Completed

Once the construction job is complete, the business builders risk insurance policy coverage ends and the business owner's business property insurance policy would pick up coverage on the completed building.  

Who Is Responsible For The Policy? 

Usually the business property owner or the contractor is responsible for obtaining this policy.  All involved parties must be named in the policy, such as the business owner, contractor, subcontractors, the bank, and/or architects/engineers.  

Have additional questions about business builders risk insurance? Contact Consultative Insurance Group today to speak with a business insurance specialist, orcomplete the form below with a convenient time to reach you!   

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