Builders Risk Insurance
When building, repairing, or renovating your office space, an accident on your construction site can quickly turn excitement into a nightmare of unexpected costs and delays in the opening of your business.
Whether you are building a custom home or a commercial business, a good builders risk policy can protect your investment in materials, fixtures and/or equipment from loss or damage while your construction project is under way.
What Builders Risk Insurance Does
Builders risk insurance provides protection during construction only. A policy can be written with options to cover soft costs not directly related to construction; like financial costs, interest, legal expenses, and even loss of income resulting from a delayed opening of your business. Policies of this type can be written in three, six, or twelve-month terms and can often be extended, if necessary.
What to Look for in a Business Risk Insurance Provider
It is imperative to learn how quickly your chosen business insurance provider processes and pays a claim. Most business construction is on an urgent timeline, so processing a claim quickly is crucial to the completion of projects and budgets.
Something else to consider when getting a builders risk insurance quote is the presence of an onerous or excessive co-insurance clause. A co-insurance clause may lower your premium, but may inflict a penalty when filing a claim. These clauses are tripped if any reported value of property is less than the real value of the property under construction. To protect yourself, ensure that the particulars of the co-insurance specs are apparent and understandable, and that readjustment of property value is enacted while building continues to progress. Be sure to know beforehand if the lower premiums offset the possible penalties that may incur should you file a claim. Read it carefully, and be watchful so that you are not penalized unnecessarily in the event that the coverage does not meet the policy’s terms.
If you are a contractor, owner, or lending institution, you can get peace of mind and financial security when you are covered by a builders risk policy from Snyder.