Builder’s risk is exactly what it implies: coverage that protects a person’s or organization’s insurable interest in materials, fixtures and/or equipment being used in the construction or renovation of a building or structure should those items sustain physical loss or damage from a covered cause. Clifton construction insurance can provide builders risk policy for all contractors in New Jersey. The coverage works like property insurance but is designed to protect property while it is under construction from fires, wind damage during storms, theft, or other hazards that may take place during the construction process.
Benefits of having builders risk
The main benefit that a commercial contractor will receive when they apply for a builder’s risk insurance policy is that it will properly cover the general contractor, as well as the property owner, from certain liabilities while the project is underway. For example, if the building being renovated is vandalized, then the insurance policy pays for any related loss or damage. Otherwise, the general contractor working on the project could be held responsible for any vandalism done to the property during the construction job.
Carrying a builder’s risk policy is protection in case something is stolen from the property while the building is under construction. Among the items that a thief might attempt to procure are tools, expensive machinery, or a variety of building materials. This policy will help protect against this equipment and/or property losses. Contractors can really benefit by having specialized construction risk insurance coverage.
Contractors could face costly claims without insurance
General contractors shouldn’t expect that the owners of the building have coverage in place. It’s much better to get a temporary insurance policy to cover the property being remodeled than to not have it and be held liable. The right decision is to apply for a risk insurance policy for each job in order to have the peace of mind that comes with this coverage, allowing you, the contractor, to then fully focus on doing a good job.
Before beginning any job look into the cost of having a builders risk insurance policy from a Clifton construction insurance agency. Getting a few quotes can be quick and easy and in many cases coverage can be supplied on the same day. Having a proof of coverage certificate will not only help protect a contractor and the property under construction, but it will also help in obtaining more jobs in the future.