Across the course of any construction project, people are exposed to all types of risks. If you seek protection from any of these, a builder’s risk insurance policy can be your first line of defense.
But is it really necessary to get a builder’s risk insurance policy? Here’s a quick guide to know when you need one:
1. You’re A Property Owner With A Construction Project
As a property owner, you must ensure that your construction project is adequately insured. That said, builder’s risk insurance helps protect property owners from financial losses in case of an unfortunate event.
Fire, theft, vandalism, and weather damage are some potential risks that may occur during construction. So if your property is not adequately insured, you could be left with a financial burden.
Fortunately, builder’s risk insurance can help cover the cost of repairs or replacement if your property is damaged. It can also help cover any legal liability you may incur due to any damage.
2. You’re Hired As A General Contractor
As a general contractor, you are responsible for the construction project from start to finish. This means that you are liable for any damages during construction.
With a builder’s risk insurance, you are protected from financial loss when your project is damaged or destroyed. That said, this insurance is important for any general contractor, as it can help offset the cost of repairs or replacement in the event of an accident.
3. You’re An Architect
If you are an architect, you need this insurance as it can protect you and your clients. It can also provide coverage for loss of income if you are unable to work due to damage to your project.
Builder’s risk insurance is essential because it can help you recoup any losses, especially if you are working on a large project.
4. You’re Working As A Subcontractor On A Project
If you are a subcontractor working on a construction project, you need to have builder’s risk insurance as it may protect you from any damages to your property or equipment while working on the project. Plus, it covers any injuries you or your employees may sustain while working.
The general contractor typically purchases builder’s risk insurance, but the subcontractor can also get one. That said, check with your general contractor if they have a policy in place.
5. You’re Remodeling A Property
If you’re planning on remodeling a property, it’s important to ensure you have the right insurance. Builder’s risk insurance provides coverage for damages or losses that occur during the construction or renovation of a building.
There are a number of things that can go wrong during a renovation, so it’s important to have this. For example, if a worker accidentally damages a wall in the building, the builder’s risk insurance can help cover the costs of repairs.
6. You Have Construction Equipment On The Site
If you have construction equipment on the site, it’s essential to have builder’s risk insurance in place. This can cover the cost of repairing or replacing damaged or destroyed equipment during construction. Plus, it can cover lost wages if construction is delayed due to equipment damage.
7. You’re Having Construction Debris Removal
If you’re planning to remove construction debris from the site, you’ll need the builder’s risk insurance. This can help cover the cost of any unfortunate incidents and any damage that may occur during the removal process.
Builder’s risk insurance is an important part of any construction project, so you must make sure you are familiar with the coverage and limits of a policy. If you’re still on the fence, it’s a good idea to speak with an insurance agent. They can help you determine if this insurance is right for your construction project.
Book an appointment with one of our specialists at Stampede Insurance to learn more about this coverage. Get started by sending us a message today for a builder’s risk insurance quote.