Whether you are building a house for a private owner or an entire shopping center for a commercial developer, builders risk insurance is a vital insurance policy that all customers want to know you carry. Builders insurance provides your customers with important financial security when they have already invested in a project.
Although it is offered as a part of standard business insurance, contractors who want to put their customers' minds at ease would be well advised to purchase this particular policy from a builders risk insurance company.
What Are the Risks?
From the moment supplies are delivered to a work site up to the point of completion, your construction project is subject to numerous perils. Natural disasters, theft, vandalism, building code problems, and even financial issues are just a few of the things that could affect the project.
These things can easily delay the project or even prevent completion if it is not protected by a good builders risk insurance policy. The last thing any customer wants to learn is that the money they have already invested in their construction project is gone and the building cannot be completed.
What Protection Does Builders Insurance Provide?
Although every builders insurance policy is different and can cover different types of risks, they offer critical protection to both you and the project owner. Policies purchased from a builders risk insurance company pay for covered losses so that work can continue and the project completed. This protects the financial investment already made on the construction.
It can also protect your business from legal issues that could arise if a loss does occur while work is being done. As such, a carefully written policy that considers all the various risks that could affect the project and documents them in detail provides essential coverage for both parties.
Why Is Builders Risk Insurance Important to Customers?
When customers select a contracting company to build their home or commercial building, they entrust the contractor with the money advanced for the project and the duty to complete the project as planned. Unfortunately, things happen that may be completely out of your control.
By purchasing the right builders insurance from an experienced builders risk insurance company, you extend an important safety net to customers as well as the peace of mind that their investment is safe with you. If something should happen, their project and investment are covered since you will have access to the funds required to complete the project.
Customers feel safer and are more likely to work with contractors who protect their financial investment with builders risk insurance. Additionally, customers may be required to prove that their chosen contractor has purchased a builders policy before the financing can be completed.
Builders risk insurance provides important protection both to customers and your business. While no owner or contractor wants to deal with complications, builders insurance gives you the ability to bounce back and keep working even after a loss. When skillfully written by an experienced builders risk insurance company, these critical policies give customers the security they need to know their contractor will protect their interests and see the project through to completion!