Every builder knows that builders insurance is an essential part of a project, for both their protection and the protection of their clients. Yet there are differing opinions as to who should actually purchase these policies; some believe the responsibility lies with the owner of the building project, while others feel the contracting companies should be responsible for these policies. Technically, either party can take out an insurance policy; however, things can get a little "sticky" when considering the requirements for contractors insurance. For the most complete coverage, many builders prefer to handle all builders insurance needs through their master contractor’s policy.

Who Should Purchase Builders Insurance?

The main concern with purchasing builders insurance is that it be done, either by the builder or the project owner. Many feel the project and its safety is the responsibility of the building owner. Yet it is the builder who faces the immediate loss and requires immediate compensation should damage to a project occur. Technically speaking, it really does not matter who purchases the builders insurance as long as someone makes sure the policy is in place and that all contractors insurance requirements are met.

Understanding Specific Risk Responsibilities

Unfortunately, since project owners may not understand all of the specific risks involved in a project or exactly what coverage is necessary to protect both the owner and builder, contracting companies are sometimes left with uninsured losses because of how the policy is underwritten. This is the main reason why a building contracting company may want to handle builders insurance issues, rather than leaving it up to the project owner. The builder is much more aware of the contractors insurance requirements necessary to properly cover a project so that neither party looses out should there be any damage to the project.

Contractors Master Policies Protect Owner and Contractor

One of the ways many builders deal with this issue is to purchase a Contractors Master Builders Risk Policy. These policies are rolling insurance plans that contractors purchase, which cover any building projects with work in progress. These policies also provide greater flexibility in terms of policy length, specific coverage, and "difference-in-conditions" (DIC) or wrap-around coverage. With a contractor’s master policy, builders can offer this insurance to project owners and have little worry about gaps in coverage that could leave them unprotected against a loss. Essentially, even if a project owner declines the offer of insurance coverage through the contractor’s policy, the contractor does not face the risk of losing money should the owner’s policy be insufficient.

Taking all of this into consideration along with the specific contractors insurance requirements that some building projects face, contractors have the most protection by purchasing master builders insurance risk policies. When this type of policy is taken out no matter if the contractor or project owner also carry a main policy on the project, builders will not suffer from a loss because they are underinsured or because the project is incorrectly insured. Contractor’s master builders policies give contractors much more control over builders insurance, not to mention the peace of mind knowing that even if the worst happens, they are covered!

Need Builders Insurance In College Station TX?

Service Insurance Group Can Help With Builders Insurance Needs!

Call Either Of Our Locations:

College Station - (979) 431-5015

Texarkana - (903) 202-0865

Additional Articles:

Lightning Safety - Are You Ready For Spring Storm Season?

Construction Risk Insurance - What Your Company Needs to Know!

Builders Risk Insurance - Understanding It All!

Bunk Bed Risks - How to Avoid Using Homeowners Insurance!

Auto Insurance and Newlyweds - Policy Combining Decisions!