Most smart contractors are aware of the importance of getting builders risk insurance for their projects.
Purchasing insurance policies for your projects doesn’t need to be difficult. Compared to the other project-related tasks involved with the construction itself, the process of getting builders risk insurance can be quite simple. There are 3 main ways for builders to get their buildings insured. You can select the one that is best for you.
1. Single Shot
This method is ideal for projects that take around a year to finish, or for contractors who do only a few projects a year. You should take note that this policy is neither refundable nor transferable regardless of whether the project is completed before the policy ends. This insurance policy requires reporting for each project separately.
2. Monthly Reporting
This method is ideal for volume-based contractors. Reporting is required only a month before the project starts. This type of insurance policy reporting is also ideal for contractors that take around 6 months to complete a project. The policies are good for 12 months and only new reports need to be reported.
3. Annual Reporting
This method may be the most ideal because it requires the least amount of work. Payment plans are commonly offered by construction insurance companies that present this kind of payment. For this method, you report an estimate of the projects you will be completing in a year, as well as projects that could possibly be still under construction until the following year. It’s acceptable to exceed the expected number of projects the following year, because your extra projects can be added by the time of audit.