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Builder’s Risk Insurance

Construction projects are wrought with potential risks and perils, and resulting accidents could devastate the financial interests of all parties involved. Most job sites include significant hazards and dangers, and many locations can be vulnerable to property damage incidents. In such situations, even relatively minor damages or slight delays can have far-reaching consequences for the project, making adequate insurance an essential investment. Builder’s risk insurance may be a valuable solution.

What Is Builder’s Risk Insurance and How Does it Work?

Builder’s risk insurance can provide critical financial security for construction firms, contractors, project owners and other project stakeholders. A general contractor often purchases these policies, although this may vary depending on the job details. Regardless, any party with a financial interest in a project should be listed in the policy, as they can then be compensated for losses arising from incidents affecting the job site, including fires, vandalism, theft and some weather-related perils.

What Does Builder’s Risk Insurance Cover?

A construction site includes many types of property that must be financially protected. Fortunately, builder’s risk insurance may cover many assets, including the following:

  • Structures—This may include permanent structures being renovated and new buildings being constructed from the ground up. Additionally, temporary structures, such as fences, signage and scaffolding, can be covered.
  • Equipment and materials—This component of builder’s risk insurance can provide financial assistance if a covered incident results in losses involving building materials, machinery and tools stored on site.
  • Key documents—Builder’s risk insurance may also financially protect building specifications, blueprints, contracts and other essential project paperwork.
  • Business interruption losses—This coverage may compensate affected parties if a covered incident delays construction, such as by helping pay additional contractor fees and real estate taxes.

How Much Does Builder’s Risk Insurance Cost?

Like many types of insurance, the cost of adequate builder’s risk coverage may vary significantly depending on the unique details of a project and its stakeholders. When assessing risk levels and determining rates, builder’s risk insurance companies may consider the following criteria:

  • Location
  • Type of project
  • Construction materials being used
  • Number of workers on site
  • Total project cost
  • Policy details (e.g., coverage limits and endorsements)

How to Get Builder’s Risk Insurance Near Me

The dedicated team at Bovard Insurance Group represents all major national insurance companies in the United States and will explore these offerings to ensure construction projects and their stakeholders are financially protected with ideal coverage. Contact us today to learn more or to get a builder’s risk insurance quote.

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