Contractors and construction professionals benefit from Builder's Risk Insurance in three ways:
- It protects your investments and offers financial security. In the construction industry, you often have to pay for building materials. Sometimes, you can't recoup that expense until you finish the job. That means you're financially vulnerable if something happens during construction. Builder's Risk Insurance protects your investments by reimbursing you for losses or damages to your property before a project is finished.
- It protects your business equipment. As the old saying goes, you need the right tools for the job. If thieves steal your tools from a jobsite, you could lose thousands of dollars and be forced to get by with substandard gear if you can't purchase all the necessary replacements. If you have Builder's Risk Insurance, your provider can pay to replace stolen tools, which allows you to work at full strength.
- It gives you a backup plan. As you know, when you're working on a construction project, things sometimes don't go according to plan. That's the nature of contracting work. While you might be able to work around problems with staff, a wrong order, or other construction issues, Builder's Risk Insurance protects you from the things you can't plan for. For example, a sudden windstorm could ruin a month's worth of work. Builder's Risk Insurance makes sure you can recoup losses when these unpredictable hazards strike.
Builder's Risk Insurance is crucial for contractors who work on long projects. Unlike other insurance policies, this coverage protects your unfinished structures and your equipment when it's on client property.