A building under construction poses many risks for the contractor. Most risks can be managed, but there is one that builders always try to avoid – litigation. Construction is among the most dispute-ridden industries. The Ninth Annual Arcadis Global Construction Disputes Report stated that the global average value of disputes totaled $33 million. The average lawsuit lasts 17 months. It’s a time consuming and expensive process. But, with building under construction insurance your legal fees are taken care of. Leaving you to get on with running your business.
In this article, we will look at who Builder’s Risk insurance is for. Who should be buying it, and how the coverage protects you.
Reduce Your Risk With Builder’s Risk Insurance
Disputes are primarily about property damage, payment issues, and errors in designs. The best way to reduce such risks is to improve transparency. Also document everything from start to finish. But what if you then misplace or lose the documents?
This is where Builder’s Risk Insurance comes in. It not only protects your investment in the building under construction. It also helps you recover important documents related to the project. However, who is responsible for insuring the project?
Who should be buying Builder’s Risk Insurance?
Who Builder’s Risk Insurance is for depends on how construction will be performed. If the owner is the General Contractor, then the owner will buy insurance. If the owner hires a General Contractor, the contractor should obtain building under construction insurance. If there is a lender as well, the coverage will name the lender as an additional insured in case of a loss.
3 Great Things About Building Under Construction Insurance
- Everybody is a winner: Builder’s Risk Insurance is designed to safeguard the insurable interests of all parties associated with the project. Whether you are the owner, the general contractor, or a subcontractor, the policy will reduce your financial risks. Today, all new construction and most major renovation projects require Builder’s Risk Insurance before work is allowed to begin. That means if you are a builder, you need Builder’s Risk Insurance.
- Alleviates the impact of accidents: The cost of cleaning up debris after a construction accident can be huge. In addition to financially draining your project, it can cause delays which will lead to further losses. In a worst-case scenario, an accident at the project site may cause pollutants to be released that damage land or water. You need to decontaminate the area before resuming work on the building under construction. Builder’s Risk Insurance will cover your costs in such a situation.
- Safety against law changes: Building codes are notorious for changing frequently. Sometimes even on multiple occasions during a single project. These changes can be detrimental to a building under construction. They can cause delays at best, and lawsuits plus heavy losses at worst. If you find yourself in such a scenario, Builder’s Risk Insurance will be your savior. Your policy safeguards you against law changes and secures your investment in the project.
Builder’s Risk From The Construction Insurance Experts
It’s clear that Builder’s Risk Insurance is a must-have if you are a construction company. Every project requires substantial investment and carries huge risks. The only way to reduce the impact of potential losses is through Builder’s Risk Insurance. At Contractors Liability, we will help you gain complete coverage with tailor-made policies. Begin securing your business’s future by calling Farmer Brown Insurance on (888) 973-0016.