Construction is consistently ranked as one of the most hazardous sectors for employers in the United States, making it a challenge to minimize perils, hazards and other incidents. As an employer operating in this industry, it is crucial to implement loss control measures capable of absorbing financial losses that might otherwise devastate your company’s finances and future. With that in mind, an adequate builders risk insurance policy may be invaluable.
Understanding Builders Risk Insurance
Builders risk insurance acts as a binding agreement between you and your insurance company and can provide critical financial security for any organization that regularly conducts construction work. Also known as course of construction insurance, this coverage casts a versatile safety net across many common risks and incidents that may impact construction sites. An adequate policy may provide critical financial protection from losses and damages related to both new buildings and those being renovated, as well as other parts of a project. Conversely, lacking sufficient coverage could leave your business without the resources to recover from incidents, meaning that you may miss deadlines or even be incapable of finishing a project altogether.
Why Your Business Needs Builders Risk Insurance
A well-tailored builders risk insurance policy can provide valuable financial protection against common incidents and perils that could otherwise leave your company struggling to recover financially. While the specific details of each policy may differ, builders risk coverage typically extends financial aid for the following incidents:
Builders risk insurance may also provide financial protection for other parts of a jobsite aside from the structure being worked on. Losses and damages involving the following may also be covered:
- Essential documents (e.g., blueprints, specifications)
In addition to helping your organization pay for repair or replacement costs related to the aforementioned physical property, your builders risk policy may also help cover soft costs incurred by an incident, such as lost revenue and additional interest accrued on loans.
Get the Right Coverage
Companies may eventually face the financial consequences of accidents and errors regardless of how experienced or diligent they may be. Given the many risks and perils involved in construction-related operations, the financial ramifications of even a single miscalculation or momentary lapse in attention could be devastating.
We’re here to help. With a history of service dating back to 1963, Johl & Company is well-versed in assessing and addressing the insurance needs of businesses, families and individuals. Our dedicated agents will work with you to ensure that the right insurance policies protect your financial wellness and future prosperity. Visit our website or call 201-664-2973 for a quote or to learn more about builders risk insurance.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.