A Builders Risk Policy for New Jersey contractors is designed to protect the property listed while under construction. This includes coverage against fires, wind damage, or other associated hazards that may take place during construction. For example, if during the construction process the building should be vandalized then the insurance policy will pay for any loss or damages. Otherwise the general contractor working on the project will likely be held responsible for the costs.
Benefits of having a New Jersey Builders Risk Policy
Thieves see construction sites as a means of getting something at little or no risk. At night, when the job is halted, criminals will often sneak onto a property to secure tools, expensive equipment or materials that may have a street value. So another benefit to carrying a builder’s risk policy is protection in case something is stolen from the property while the building is under construction. Therefore this policy would help protect against these equipment or property losses.
There are other reasons why contractors should make sure that they have specialized construction risk insurance coverage. There are other construction risks that could lead to legal issues for the contractor such as negligence, or extreme weather conditions (such as lightning strikes to the property), which could result in extensive damage and delays.
Contractors need insurance to protect against claims
General contractors should never expect the owners of the building to have coverage in place even though most probably do. It’s still makes sense to at least get a temporary insurance policy to cover the property being remodeled rather than run the risk of being uninsured and then be held liable for problems that might occur. The best decision is to apply for an insurance policy for each construction job as this will provide the peace of mind that comes with coverage and allow the contractor to focus on getting the job done.
Getting a few quotes on a New Jersey Builders Risk policy can be quick and easy and in most cases coverage will be supplied on the same day. Having a proof of coverage certificate will not only help protect a contractor and the property under construction, but also help in securing jobs moving forward.