For most commercial contractors insurance is not something they want to deal with but the fact is whether you are a home builder or remodeler you need insurance coverage. One great policy for commercial construction you should apply for is builders risk or course of construction insurance that is temporary insurance coverage for the property during construction. If you’re doing a job and by some unfortunate twist of fate, theft, fire, lightning or vandalism, etc. occurs, then builders risk insurance is going to be on the forefront of your mind. There’s an old saying “Failing to plan is planning to fail,” although that may be true, nobody plans for a building to get hit by lightning either, but if it does, you’d better hope it’s insured while it under construction.
A builders risk insurance or course of construction policy will provide coverage for a wide range of events, as well as the events listed above it can also provide cover for wind (depending on area), hail, explosion, vehicles and aircraft. However, there are a few exclusions you must be aware of. These can include but are not limited to; Employee theft, water damage, contract penalty, voluntary parting, war, government action and more. It’s best to become familiar with your risk insurance policy prior to undertaking a construction job so you are fully aware of its limitations and exclusions. It is always best to ask your construction insurance agent any questions about policy limitations so you understand up front what you are getting in your insurance policy.