Owning a successful construction company means having the right type of construction insurance. From equipment coverage to property insurance, you need all types. Some business owners are also turning to builder’s risk insurance.
What It Is
A special kind of property insurance, builder’s risk insurance protects buildings that are under construction via your company. This includes both new constructions and renovations and insures the materials, equipment, and fixtures.
The Necessity of It
Builder’s risk insurance is a necessity for anyone working in construction or if the company does not have a policy, the owner of the building. Coverage includes fires, theft and vandalism, and extreme wind. Like traditional policies, though, it does not cover floods or earthquakes in most cases. Keep in mind that risk insurance does not work in cases where someone would receive workers’ compensation.
How It Compares to General Liability Coverage
According to www.sboneinsurance.com, there are key differences between builders risk policies and general liability policies. Namely, builders risk doesn’t take care of people. This means you’ll need a general liability policy as well, which covers bodily injuries that occur while you’re working.
Remember, an excellent insurance agency that is used to working with construction-based clients can help you find just the right combination of policies to meet your needs. Avoid under-buying, but know that a reputable agency won’t oversell, either.