Builders Risk (COC/Wrap Up-Liability)
Construction projects, regardless of their size, can present complex insurance issues. Are you confused about your exposures and policy options? If so, it’s no surprise—there are no standard builder’s risk policy forms covering these types of risks. To help you limit your exposure, here are some helpful builder’s risk policy basics.
Builder’s Risk coverage is a type of property insurance specifically designed to cover property during the course of construction, including renovation and repair.
Why do you need it?
There are additional risks and responsibilities inherent in this type of work that a typical property policy is not designed to cover. For example, if someone steals contractors’ equipment from the job site or if construction materials are damaged, you could be liable for the loss if you do not have builder’s risk coverage.
Typically the coverage is purchased by either the property owner or the contractor.
Regardless who purchases the coverage, all parties that have property involved in the project should be named in the policy. This may include the owner, contractor, subcontractors, the financial institution funding the project and, in some cases, the architects and engineers. Once the project is completed and/or accepted by the owner, your regular property policy kicks in.
Careful planning is the foundation for a smooth construction project. Many businesses choose to transfer or accept risk through contracts, purchase orders and lease agreements. However, not all contracts or endorsements are created equal. A broker who understands your business can knowledgeably help you with builder’s risk policy language to meet your individual needs. Contact Regional Insurance today to learn more about contractual risk transfer and its place in your overall risk management program and to learn more about builders risk insurance.
Builders risk insurance provides valuable protection in the event of a direct property loss experienced by a contractor, project owner or other insured party during the construction process. At The Regional Insurance Services Inc., our expert brokers are able to utilize their insurance knowledge and industry experience to provide the appropriate coverage for you Builders risk insurance needs.
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