One of the main benefits that a commercial contractor will receive when they apply for a builder’s risk policy is that it will cover the contractor and the property owner from certain liabilities while construction is underway. Builder’s risk coverage works much like property insurance but is designed to protect against fires, wind damage during storms, theft, or other hazards that may occur during the construction phase.
A builders risk policy has many benefits
The builders risk insurance policy, available through a local Clifton construction insurance agency, will cover malicious acts to the property and protect the commercial contractor or builder responsible for the renovation of the building. For example, if the building should get vandalized, the insurance policy pays for the loss and any resulting damages. The general contractor could otherwise be held responsible for the vandalism done to the property during construction.
Another benefit of a builder’s risk policy is protection in case something is stolen while the building is under construction. A thief may realize there isn’t any security patrolling the site and steal tools, expensive machinery, or building materials. The policy would help protect against these types of losses as well.
There are many reasons why contractors should purchase specialized construction risk insurance coverage. There are many other risks that could lead to legal issues for the contractor, such as negligence, or extreme weather conditions, including lightning strikes to the property.
Insurance that protects against claims
General contractors shouldn’t depend on the owners of the building to have coverage in place. It’s better to get a temporary insurance policy to cover the property being remodeled and not face any liability concerns. The wise decision is to apply for a builders risk policy as part of your Clifton construction insurance for every job in order to have the added peace of mind that comes with this coverage.
Before starting any job, look into the cost of a builders risk insurance policy. Getting a few quotes will help, and you can even get coverage on the same day. Having a proof of coverage certificate helps protect you, as the contractor, along with the property under construction and also helps in obtaining jobs into the future.