Why Do Builders and Contractors Need a Builders Risk Insurance Policy?

As a builder or commercial contractor you know that insurance is critical. A builders risk insurance policy is one of the most important policies you need to get as a builder. The reason for this is that building a house from start to finish is a very risky process and as such; you need adequate covering for yourself against any negative scenario that comes up.

There have been cases where a building collapsed in the middle of the construction process. This not only makes the builder lose some reputation; it could also make him lose a lot of money to court claims when the owner decides to take the issue to a court.

Therefore, to avoid the issue of having to spend huge sums on compensation to the client(s) when a court finds you guilty, you need to get yourself a builder’s risk insurance policy.

The owner of a construction work most times gets an insurance policy for the building project but however, it is almost never complete. For example, a construction owner could get a policy that protects him against collapse but will not get a policy that will protect him from theft of building materials. This will make the builder prone to claims arising from lost building materials. Therefore, it is always advised that a builder makes his or her own construction insurance arrangements prior to working on a project.

Whenever in doubt always ask questions and ensure that you get the particular insurance covering for you and your construction specifics.