Builder's Risk Insurance
for Contractors, Builders & Other Construction Professionals

Because contractors often build at a client's location, they are exposed to unique risks. For starters, what happens if your tools, equipment, and materials are lost or damaged while on someone else's property? And what happens if you're in the middle of building an expansion on a home and a fire burns it down before you're done?

Does your insurance cover these losses?

Unfortunately, the typical Property Insurance policy only covers your materials, equipment, and supplies while they're at your business's primary location. It doesn't cover damages to construction projects in progress, either.

Luckily, there's a special insurance policy — Builder's Risk Insurance — that addresses these unique exposures.

How Does Builder's Risk Insurance Work?

How Does Builder's Risk Insurance Work?

Contractors and construction professionals benefit from Builder's Risk Insurance in three ways:

  1. It protects your investments and offers financial security. In the construction industry, you often have to pay for building materials. Sometimes, you can't recoup that expense until you finish the job. That means you're financially vulnerable if something happens during construction. Builder's Risk Insurance protects your investments by reimbursing your for losses or damages to your property before a project is finished.
  2. It protects your business equipment. As the old saying goes, you need the right tools for the job. If thieves steal your tools from a jobsite, you could lose thousands of dollars and be forced to get by with substandard gear if you can't purchase all the necessary replacements. If you have Builder's Insurance, your provider can pay to replace stolen tools, which allows you to work at full strength.
  3. It gives you a backup plan. As you know, when you're working on a construction project, things sometimes don't go according to plan. That's the nature of contracting work. While you might be able to work around problems with staff, a wrong order, or other construction issues, Builder's Risk Insurance protects you from the things you can't plan for. For example, a sudden windstorm could ruin a month's worth of work. Builder's Risk Insurance makes sure you can recoup losses when these unpredictable hazards strike.

Ask a contractor what a good day of work is like, and they'll say, "Busy." That's because you need to be working, building, and planning in order to make money.

Builder's Risk Insurance is crucial for contractors who work on long projects. Unlike other insurance policies, this coverage protects your unfinished structures and your equipment when it's on client property.

What Does Builder's Risk Insurance Cover for Construction Professionals?

What Does Builder's Risk Insurance Cover for Construction Professionals?

When you file a Builder's Risk Insurance claim, your insurer can reimburse you for financial losses your business suffers. Here are the instances that Builder's Risk can cover:

  • Onsite tool and equipment theft. Construction sites are frequent targets for thieves. Crooks can steal copper wire and tools, making off with thousands of dollars of your business property. Builder's Risk Insurance reimburses your business for losses from theft.
  • Fire damage to structures in progress. If a fire burns down your work, Builder's Risk Insurance can cover the cost to repair the structure or tear it down and start from scratch. After a fire (or other catastrophe), the cost to rebuild is often greater than the original estimates because of the added time and expense of cleaning up. Some policies offer replacement-value coverage, which helps you cover the cost of cleaning up after a fire, clearing away debris, and restarting your work.
  • Vandalized structures in progress. There are some things you just can't predict. If some teenagers decide to wreak havoc at your construction site, Builder's Insurance can cover the damages.
  • Structural damage from weather events. Your policy can cover structural damage caused by rainstorms, windstorms, and non-severe weather events. However, damages caused by natural disasters are not covered. If you need coverage for hurricanes, earthquakes, or floods, talk with your agent about adding on the appropriate endorsements.

Whether you're building a new home or adding a breezeway to connect a house to a garage, the materials and time that go into a construction project are a huge investment for your company. Builder's Insurance covers your construction work until it's finished and sold to the client.

Get Free Builder's Risk Insurance Quotes

Get Free Builder's Risk Insurance Quotes

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