Builders insurance is essential for all contractors, no matter what they are building or who owns the project. While there are differing thoughts on who should actually purchase builders construction insurance, there are more reasons why builders themselves should be the ones to take out these policies rather than allow project owners to purchase them. When considering the following points, contractors can expect much greater protection when they are the ones who hold the builders insurance policies on any projects where work is being done.
Fewer Disputes Over Coverage
Damage to a building project can leave the building contractor with uncovered losses if the project owner purchased the builders construction insurance policy. Insufficient or improper coverage may not pay benefits when losses occur; however, if the contractor purchases the policy, disputes do not generally occur and payment is quickly handled. Contractors understand the actual risks that need coverage so they will not suffer a loss. When contractors take out builders construction insurance, there is much greater control over the amount of coverage purchased, the length of the policy, and other important details. That way a contractor's investment in a construction project is properly protected, along with that of the building owner.
Less Chance of Being Sued
When losses take place at a construction project and an insurance company has to pay for a big claim, it is natural for the insurance company to investigate the cause of the damage and then try to seek compensation from the party that caused the loss. Contractors who hold builders construction insurance gain a certain amount of protection from any lawsuits that could be levied against them if the builders insurance policy were held by the project owner.
Even if a builder is not directly responsible for damage and responsibility lies with another party, the insurance company may elect to sue the contractor first when the project owner is the policy holder. This frequently means the building contractor must defend themselves and potentially file suit against whichever third party may have been responsible for the loss. Building contractors who hold the builders insurance policy receive coverage for their claim up front. The insurance company investigates the cause and files suit as necessary against any third parties who may be at fault.
Greater Control of Project Insurance
Besides the points referenced above regarding sufficient coverage, building contractors also retain greater control over the insurance of any ongoing projects when working with their own insurance company. They can cover projects under a master builders risk insurance plan and ensure that all subcontractors have their own insurance to further protect the building project. Contractors also remain in control of insurance premiums. While this puts an added amount of responsibility on the contractor to obtain reimbursement from the project owner, it eliminates the chance that any missed premium payments will leave a project unprotected for any length of time. A contractor purchasing the insurance policy also enables them to include the right to rebuild after a loss, an important option that a project owner may not include.
While every contractor understands the critical need for builders insurance, it is recommended that contractors also be the ones who purchase these insurance policies. Control over builders construction insurance allows the contractor to make sure their projects are appropriately covered in every way, reducing their own liability and giving them important control over the project in the event any losses should occur!
Need Builders Construction Insurance In Wake Village TX?
Service Insurance Group Can Write Great Builders Insurance!
Call One Of The Following Locations:
College Station - 979-300-7345
Texarkana - 979-300-7345
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!