Building under construction insurance is the cheapest way to protect your profits. The purpose of insurance is to transfer the risks you face to another party. You can make an educated appraisal of the problems you are likely to encounter in your project, and get coverage for them.
Insurance is relatively cheap to buy and if those risks materialize, your insurance bears the cost. Let’s look at what you need to protect the profits in your construction business.
What insurance should you get for building under construction insurance?
There are many risks that can threaten profits and most of them will be covered by three forms of insurance. These are:
As an employer you are required to have this insurance. It is there to protect your employees in the event they are injured at work. This insurance will pay medical costs that arise from the injury, and it will pay for loss of wages.
How does Workers Compensation protect your profits?
This insurance does so in 2 main ways. Firstly, if you don’t have this insurance (which is mandatory) you can face a significant fine. The second is without it you would be personally responsible for the medical costs of your employee and you would have to pay them for loss of income. Medical costs can be prohibitively expensive and even could threaten the continuation of your business. Building under construction insurance makes good sense.
You can be held responsible for costs if you cause damage to someone else’s property or you cause them bodily harm. On a construction site even with the best safety protocols, accidents can happen. An example could be a chimney falling from the building you are working on and crashing through the roof of your neighbor.
How does General Liability Insurance protect your profits?
This insurance provides coverage for liability claims. It helps to pay for the costs from the damages, and it also pays for your legal defense. Litigation in the construction industry is on the rise and has seen some very big settlements. This coverage means you will not personally pay these costs.
Builder’s Risk Insurance (Building Under Construction Insurance)
This is specialized property coverage available for the construction of new buildings and the refurbishment and renovation of existing ones. Your policy is customized for your particular project and it provides coverage for things like theft, vandalism, adverse weather like hail, and materials.
How does Builder’s Risk Insurance protect your profits?
When you are building under construction insurance your policy will pay out when a risk materializes. Theft and vandalism are common occurrences on a construction site, and the costs of replacement and repair can run into several thousands of dollars. Expensive fixtures like elevators and HVAC systems can be damaged in transit or installation, and you could be insured for this event. You can even get coverage for the costs incurred from project delays.
But the best part of Builder’s Risk Insurance contractors can be reimbursed for a percentage of profit earned as of the date of the loss.
Where can you get your building under construction insurance?
Speak with Contractor’s Liability for your insurance needs. Our agents are experts and will assist you with the best coverage at the best rates. Call us on 866-225-1950 and see how you can protect your profits.