There are many types of commercial insurance that general contractors need to protect their projects and their businesses.

Among them is builders risk insurance, which provides crucial protection for contracting companies and their clients while a project is under construction.

Sold by most insurance agencies that offer business and commercial policies, builder’s risk coverage is essential insurance that most contractors are required to purchase or they should if not currently doing so!

What Does Builder’s Risk Insurance Cover?

Builders risk insurance is a commercial insurance policy that covers the project itself against unexpected damages and other financial liabilities that can happen before completion.

It is insurance that pays benefits when something like vandalism, a natural disaster, severe weather, a fire, or some other event causes damage to the property before it is completed, resulting in significant financial losses.

A well-written policy from an experienced contractor’s insurance agency will compensate for several types of loss including property damages, loss of equipment and supplies, lost income, and others depending on the project and the policy.

This coverage provides the financial assets required to make repairs and complete the project so it can be successfully turned over from the contractor to the owner.

Who Must Purchase Builder’s Risk Insurance?

Builder’s risk insurance policies are written for an individual construction project, with the policy terminating once the project is turned over from the contractor to the owner for use.

As a builder’s risk policy from a commercial insurance agency provides critical financial protection to both parties with a financial interest in the project, Texas law mandates that either the owner or the contractor must purchase this essential insurance.

Many contractors prefer to purchase builders risk insurance themselves, as they can most accurately convey the scope and cost of the project and dictate the named perils they and the owner wish covered to ensure there is adequate protection.

Fortunately, it is an economical insurance policy in comparison to the significant losses that could occur otherwise.

Learn How Builder’s Risk Insurance Can Save The Day

In this brief explanation about the importance of builders risk insurance, Brad Hurt partner at Service Insurance Group, shares a story about where this crucial commercial policy really paid off!

Stay Safe with a Builders Risk Policy!

Whether protecting the construction of a personal home or a massive skyscraper, every general contractor needs business risk insurance to protect both themselves as well as the project owner’s financial interests should the unexpected happen.

A commercial insurance agency with experience writing these critical contractor policies can help.

Contact a knowledgeable local insurance agent to discuss business risk policies and get a project quote today!

Need Builders Risk Insurance in Bryan Texas?

Contact the Insurance Experts at Service Insurance Group!

Call 979-300-7345 For A Quote On Your Project!

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