The Builder’s Risk Policy – Important Insurance Coverage that Protects More Than a General Liability Policy
Why do I need Builder’s Risk Insurance on top of my General Liability policy?
Builder’s Risk Insurance provides building owners and general contractors with insurance coverage for a wide range of risks when buildings are under construction. The Builder’s Risk Policy is a special property insurance policy that protects insurable interest in materials, fixtures, and equipment used during construction or building renovation. Coverage provided is similar to typical commercial property insurance.
Fire – high winds – a worker falls while on the job. Builder’s Risk Insurance indemnifies the building owner or general contractor against losses due to fire, lightning, wind, or vandalism. Limited coverage for a building collapse is often included, and exclusions are clearly indicated in the policy, such as earthquake, flood or water damage, war, employee theft, and mechanical breakdown.
General Liability Insurance is designed to provide protection against third party claims and payment is typically not made to the insured.
Click here to learn more about specific coverage provided in a standard Builder’s Risk Policy.
The Builder’s Risk Policy is designed to provide special coverage during the construction period and is usually terminated when work is completed. Certain property insurance policies will cover renovations or additions to an existing building, however it is essential to review your policy coverage to ensure sufficient protection is in place before a project begins.
Coverage in Builder’s Risk Insurance is generally intended to protect a property owner from sudden accidental events and generally excludes damage resulting from faulty design or poor construction.
Learn more about business insurance in the next installment of Insurance Insights, brought to you by Bart Taylor Insurance.