What does BEST Builder’s Risk construction insurance advice mean? It means that this article comes from the insurance experts at Contractors Liability. We specialize in insurance for contractor businesses. This is article 2 of our 5 part series.
In this article, let’s give you some advice on Builder’s Risk. Builder’s Risk will cost you between 1% and 5% of construction costs. The percentage depends on factors such as the duration and size of the construction project, geographical location, and your business’s safety track record. Based on your coverage, Builder’s Risk insurance will reimburse property replacement, profits, debris removal, valuable papers and electronic data. Your policy will also protect you against contamination cleanup costs.
Let’s take a look at some more Builder’s Risk construction insurance advice that will save your business money.
How Can You Save Money On Builder’s Risk Insurance?
- Have a solid safety record: Your insurance agent will use your safety track record to compute your premiums. This means if your business has made claims in the recent past, you will more likely pay higher premiums. Emphasize safety measures to workers on your construction sites. Prevention is better and cheaper than cure.
- Assess your risks: There is no one-cover-fits-all for Builder’s Risk. Take the time to assess the risk you should cover for based on the type of construction, the geographical location, and weather patterns in that area.
- Get a tailor-made cover: Select an insurance broker or agent who understands the nature of your construction business and the geographical area where you are situated. You get the best Builder’s Risk insurance advice on cost savings from an agent familiar with what your state and region’s insurance companies have to offer.
Do You Need Policy Extensions?
Is it cost effective to buy the cheapest Builder’s Risk coverage as long as you are insured? Not necessarily so. The cheaper the cover, the lower the premiums; true. However, you will find cheaper coverage limits the circumstances and types of damage. This may not protect your business well.
A policy extension will include damage generally excluded from Builder’s Risk coverage. You may wish to consider such an extension if you will face higher risk, such as a construction in an earthquake prone or coastal area.
Do You Need Other Construction Insurance?
Yes you do.
Builder’s Risk will cover you for damages done to ongoing construction and materials. However, in case of injury to your employees, or injury to other persons caused by your employees, you are not covered. For other kinds of damage you need these covers:
- General Contractor Liability: To protect your construction business from third party claims on damage to property, injury, reputation, rented premises, and advertising mistakes
- Commercial Auto Insurance: To protect your business from the cost of repairs to work vehicles, medical expenses for injured employees involved in car crashes in work vehicles, and claims made by uninsured motorists involved in accidents with your work vehicles.
- Workers Compensation: To protect your business and employees in case of injuries while on construction sites. This cover will go towards paying medical bills, a percentage of lost wages, cost of retraining if needed, or funeral expenses and death benefits in case of fatalities.
Call Today For Builder’s Risk Construction Insurance Advice
Get more Builder’s Risk Construction Insurance advice with our expert insurance agents at Contractors Liability. We have experience and access to markets that can get you insured at the lowest cost. Get in touch with us today for a free quote, no obligations. Reach us on 888-819-1228 now.