A property owner usually carries property insurance to pay for damages and losses associated with disasters such as fire, certain weather events, theft, and vandalism. When your company completes the erection of a facility, you can expect an owner to make sure that the new facility has property insurance for disaster-related losses. Before the client accepts the completed facility, most contracts require one or more walkthroughs to ensure that the project is completed according to the contract documents. Most contractors “own” the facility during construction. Who pays for losses for incomplete projects?
Understanding Builders’ Risk
A builders risk policy is insurance that protects your company’s interest in materials, fixtures, and equipment before and after installation during a construction or renovation project. If building materials and equipment were destroyed or stolen, your company would be responsible for recovering those items. Ongoing construction projects are often exposed to the elements, theft, and vandalism. Also known as construction or inland marine coverage, this type of insurance is a must for contractors and construction companies.
Taking Care of Your Business
Losses experienced during construction can eat into your profits. Unrecoverable losses can also impact your ability to build jobs correctly, on time, and within budget. A builders’ risk policy helps you take care of business for the benefit of your employees, your clients, and subcontractors.