Building insurance reduces financial liabilities associated with construction site risks. One key risk is the loss of building materials through theft. Replacement of stolen materials can take between 25% to 30% of the total project expenditure. This is a high cost to pay for factors outside your control. So how do you stop your business from losing money? In this article, let’s look at how Builder’s Risk insurance coverage will protect you.
Builder’s Risk Building Insurance
You can increase surveillance and hire security personnel to reduce instances of theft. But despite your effort’s materials can still be stolen. Your company will be expected to replace stolen materials to keep projects running. This causes an unnecessary financial burden if you don’t have building insurance. Taking up Builder’s Risk coverage will safeguard your interests.
Builder’s Risk provides coverage for new construction or renovation projects as well as the materials and equipment being used. But the question remains; how will Builder’s Risk insurance protect building site materials?
3 Ways Builder’s Risk Protects Theft of Materials
Coverage for materials in transit.
Construction involves the purchase and transportation of building materials. There are many opportunities for theft during transit. Especially over long distances. Smaller construction companies often have to hire trucks to facilitate the transportation of materials. This exposes them to risk – especially if the transporter is not trustworthy.
Your company can take measures to improve transit security. If a theft does occur, then all you need to do is file a claim. Building insurance covers financial costs associated with the replacement of stolen materials
Coverage for materials stored in an offsite location
As a contractor, you probably own a storage warehouse for your materials and equipment. This is a great idea. It allows you to control the environment and provide additional security. Unfortunately, these off-site storage areas are also susceptible to break-ins. This is a cause of concern.
Building insurance also covers materials stored away from the construction site. However, they have to be directly associated with your insurance project. Whenever you store construction materials in an off-site location, include them as part of your insurable interest.
Coverage for materials stored on site
You probably store materials within the construction site. This saves time and facilitates a smoother workflow. Additionally, it reduces the costs of moving materials to or from storage sites.
If your construction site is poorly secured or in a high-risk area, you could lose a chunk of work materials. Considering your huge workload, you shouldn’t have to worry so much about replacing stolen materials.
Despite the relief brought about by Builder’s Risk insurance, you should take additional measures to secure your materials. Making frequent claims increases your insurance premiums. You can improve job-site security by:
- Increasing surveillance.
- Hiring security personnel
- Keeping your job site well lit after hours
- Scheduling supply deliveries
- Keeping good records.
Building Insurance from Contractors Liability
As you can see there are many opportunities for loss in the construction industry. Most instances of theft are opportunistic. That doesn’t mean that the financial losses are negligible. Take up a building insurance policy to cover your building materials.
We would love to be a part of your business’s journey. We will help you secure your materials through our competitive Builder’s Risk insurance policy. To get in touch, call Contractors Liability on 888-676-0923.