Every contractor knows the risks involved in a construction project. Hail could damage construction equipment. Vandalism can destroy the property. A rogue fire could cause a project to shut down for weeks. With all of the potential liabilities associated with a construction project, it is important for contractors to have builders risk insurance for protection.
What Does Builders Risk Include?
Coverage extends to a wide number of areas, including:
- Theft and vandalism
- Accidents involving vehicles
Not every risk is covered with this particular type of insurance. For example, flooding and earthquakes are usually excluded. It is also important for contractors to take with an insurance agency before acquiring builders risk insurance to determine the full extent of coverage.
Asking for an Extension
Depending on the situation, it is possible for contractors to ask for an extension on coverage. This is applicable when a project is shut down after an accident occurs or when construction is halted due to damaged property or equipment. No two incidents are the same, so contractors should work with their insurance agent to determine how builders risk insurance can best work for them. There is no way to avoid the various risks involved with construction, but protection is available through the coverage provided by builder’s risk.