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Builder’s Risk Insurance

Builder’s Risk Insurance from Contractors Liability

Builder’s Risk Insurance is a policy that covers a building under construction. But what is it for? In fact it is also known as Course of Construction insurance. That’s a clue, isn’t it?

So, let’s look at some of the ins and outs of this coverage. We also look how it is different than General Liability. Lastly, we ask if you need both.

4 Reasons to get Course of Construction Coverage

It differs from General Liability Insurance in several ways. For example:

  • General Liability covers third-party property damage claims. One the other hand, Builder’s Risk offers property replacement. You want this in the event that the building you are working on is damaged or destroyed.
  • You get day-to-day coverage with General Liability. However, Builder’s Risk is project-specific. This means that your liability insurance will be in effect no matter which site you are working on. However, your Builder’s Risk is only for a specific project. In fact this can be
    • a ground up build
    • renovation
    • remodellng project
  • Builder’s Risk Insurance gives coverage for material that is usually excluded from General Liability policies. For instance, building materials, equipment and tools.
  • Liability policies are generally renewed per year. However your Course of Construction insurance only lasts as long as the project does. Your options are:
    • 6-month policy,
    • 9-month policy,
    • 1-year policy, or
    • custom expiry date.

With this in mind, it makes sense to purchase both policies. In short, General Liability protects you from third-party damages. On the other hand Builder’s Risk is for damage to your own construction albeit one under construction.

Yes, you can have both. In fact you should make it your business to get the best coverage that you can. By the way, Builder’s Risk only costs 1 – 5 % of the construction costs.

So why choose Contractors Liability?

Get a quick quote that is custom-tailored to your business from our licensed insurance agents. Call Contractors Liability at 888-819-1228 for a 5-minute quote.