From Karen Reed:
Builder’s risk coverage is essential in helping to protect construction projects, but can be complex and often misunderstood. The bottom line is the materials, supplies and equipment on a building site need protection from theft, fire and other risks.
Who Needs Builder’s Risk Coverage?
Any person or company with a financial interest in the construction project needs builder’s risk insurance. Some common people you may want to include on your policy as insureds include the:
• Property owner
• General contractor
• Subcontractors
• Lender
• Architects
The coverage amount needed is determined by the contract price between the Property Owner and the Contractor. It should be determined prior to the start of construction or renovation as to whom will be responsible for providing this very important insurance coverage.
A builder’s risk policy as part of a thorough risk management plan can boosts a company’s reputation, while protecting your business and providing peace of mind for the contractor and his or her client.