What You Need to Know About Builders Risk

What You Need to Know About Builders Risk

SB One Insurance

Dealing with the financial aspects of projects within the construction industry can be tricky. A great deal goes into producing the end results, but what if something should happen to that which was purchased for the project? Will construction general liability insurance protect the materials involved or only preexisting property? You may want to keep things simple in your insurance portfolio, but this may not cover everything you need, putting your building materials in danger.

Builders Risk

What is builders risk? To put it simply, it’s an insurance policy that is made specifically to cover the property, materials and equipment that directly relates to what is being constructed. It can be a shame if something happens during construction that damages needed materials and, unfortunately, general liability would not cover the costs of repair or replacement. General liability in construction specifically covers any costs related to property damage and bodily injury and not the contractor’s own materials.
Builders risk insurance is able to cover the costs of replacing or repairing material should an accident or crime happen. Fires or explosions may happen on-site, leading to nearby building materials being damaged. There could also be vandalism or outside theft while no one is around. Any negligence is typically not covered, however, such as material stored unprotected and getting water damaged, as stated on SB One Insurance.