Many risks often accompany most construction projects. However, you can mitigate the financial stress of these risks by purchasing insurance policies that protect you from the effects of theft, injury or damage. Most contractors agree construction liability insurance is a must, but here are three reasons why builders’ risk insurance is also crucial to your next construction project.
1. Equipment Protection
Generally, construction liability insurance will cover damage to your property or on-site personal injuries. However, without a builders risk policy, equipment and contractor’s property will go unprotected. You can avoid costs associated with theft and property related to building by securing an effective builders risk insurance plan.
2. Natural Disaster Aid
A builders risk policy can protect you from the damages associated with lightning strikes or hail. You can also purchase extended coverage to ensure that temporary structures such as scaffolding are also protected from potential uncertainties.
3. Damage Reimbursement
If you want to ensure all working parties’ equipment is protected, it’s essential to have insurances for everyone involved with your project. Coverage will not protect tools and workplace accidents or individuals not listed on the policy.
You can avoid many of the common risks associated with construction by purchasing a builders risk insurance policy in conjunction with construction liability insurance. When you have both policies in place, you can rest assured knowing your project will likely be a success.