Not all insurance policies are the same. For example, one company’s builders risk insurance could have coverages that another company’s policy does not have. If a business owner wants to get the right insurance for his or her company, an understanding of the different available protections is necessary.
Covering Unique Risks
While the base builders risk insurance will cover the same thing—the structure that is being built and the materials used to build it—there are other risks this policy may be able to cover. For example, a knowledgeable insurer may be able to write coverage that protects against accidents during debris removal, scaffolding issues and loss of valuable records. Not all policies of this nature will cover water or wind damage. However, if this is a known issue in the area of the work site, the insurer may be able to include it in the policy being built.
The benefit of these extra coverages is that businesses can get the exact coverage needed for their project. For example, if a work site is in an elevated location, flood coverage may not be needed.
Estimating the Cost
It can be hard to estimate the cost of a builders risk insurance policy. However, there are certain elements that construction company owners can consider. The deductible, business history, previous claims and value of the project being covered may play a role in the overall cost.