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Course of Construction Insurance is the cheapest way of limiting your financial loss when something goes wrong on your project.  It can be something small like the theft of some tools. It can also be a significant loss like high winds ripping off the roof of your unfinished building. The costs can run into thousands of dollars and without insurance, it would come out of your profits.

 

The question should really be, can you afford to not have Course of Construction Insurance? Let’s look at the coverage this insurance provides, and what determines the cost.

 

What coverage does Course of Construction Insurance Provide?

 

Another name for this insurance is Builder’s Risk Insurance.  It covers the risks that builders typically face on projects.  There is no standard policy as each one is customized according to the project it is for.  There are some common inclusions, namely:

 

  • Theft of tools and materials
  • Vandalism
  • Fire
  • Weather events (like hail and high winds)

 

Many more risk events can be included in your project.  Examples are the removal of debris following an accident, protection of important documents, protection of temporary structures like scaffolding, and insurance for off-site storage and transportation of expensive equipment.

 

How much does Builder’s Risk insurance cost?

 

Every policy is unique because it is tailored for a particular project and client. There are a number of factors that are taken into determining the cost.  These are:

 

  • The cost of the project.  This is property replacement coverage. The final cost of your project is the amount for which you need to be insured. This is the biggest factor determining the cost of your policy.

 

  • Location. In general a policy will cost more for a coastal project than one located inland.  This is due to the higher risk of events like damaging wind and flooding.

 

  • Type of project. If the project involves major structural challenges there is more risk and the policy will be more. Insurance for a simple installation would cost less, for example.

 

  • Type of Construction. The construction type and material used influences the level of risk the building faces.  For example a wooden frame building is more at risk from fire than a brick and mortar structure and the policy price will be higher.

 

  • Optional Coverage. Your policy is tailored for your needs and you can include coverage for events such as earthquakes, flooding or even the protection of profits in the event of delays.  These will influence the cost.

 

  • Length of Project. A Course of Construction policy is for the duration of construction. It has a fixed term of either 3, 6 or 12months.  The longer a build takes, the more risks it faces and it stands to reason that this will increase the cost of the policy.

 

No, Course of Construction Insurance is Not a Waste of Money

 

It is clear that when things go wrong, Course of Construction Insurance is worth every cent.  It will protect your profits, and make sure your business remains viable.  Speak with our agents at Client Liability.  We will customize a policy for the risks your project is facing.  Call Contractors Liability on 866-225-1950.

 

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