Did you know that a staggering 80% of small businesses lack a small business insurance policy? Most of these businesses rely on their owner’s insurance for protection.
This is quite troubling. Using personal finances to settle business claims jeopardizes your family’s financial security.
A major reason for the underinsurance of small businesses is the lack of awareness. There are lots of insurance coverage options available in the market, and it’s often confusing for small business owners to understand what works for them.
Here, we take a look at Builder’s Risk Insurance and how it’s beneficial for businesses that engage in construction work. Dive in.
The Builder’s Risk Insurance
This insurance is also known as the course of construction insurance. This course of coverage protects your interest in the property during its construction or renovation. The policy comes into effect should the property sustain physical damage from a loss that it covers.
This course of coverage doesn’t include perils such as damage from floods, hurricanes, and earthquakes. The insurance will only cover these items if you negotiate for a specific coverage that includes them.
It’s also possible to negotiate a small business insurance builder’s policy that covers third parties, such as your construction workers. In the event that workers sustain work-related injuries, the policy will help offset their treatment costs and other compensations.
Common Items Under Builder’s Risk Coverage
The common items under this policy include but are not restricted to:
- Structures under construction including fencing, scaffolding, and temporary storage buildings
- The materials and supplies that you use for the construction
- Equipment awaiting installation and the ones that you’ve already installed
- Repair of damaged equipment so long as you specify
Aside from protecting your property against damage, the policy can also cover other soft costs. These are expenses, such as real estate taxes and extra interest on loans, that don’t have a direct relationship with the construction.
When Should You Have It?
It’s best to get this policy when you have a stake in construction work. The owner of the property is the obvious benefactor of this policy, but other players need it too. Some stakeholders who should have coverage include lenders, subcontractors, general contractors, builders, architects, structural engineers, and investment companies.
Situations Where the Builders’ Risk Insurance Come in Handy
Many of the local governments have made it mandatory for property developers to get a builder’s insurance policy. This coverage serves as proof of compliance with the state’s building codes. The policy is, thus, an integral document when you have ambitions of putting up a structure in most states.
When the construction project has many stakeholders, one person can buy this coverage and add the names of other stakeholders.
Where Do You Start?
There are a lot of insurance firms that offer this policy to interested parties. Your first step should be to research the rates that different providers charge.
Compare the rates against what the policy covers. This way, you can determine if you’ll be getting value from the investment.
Get Coverage From Bethany Insurance Agency
Going for small business insurance protects you from the losses arising from your operations. The coverage may vary from person to person so it’s better to identify your needs beforehand. This will help you settle for a policy that’s perfect for you.
If you are having trouble finding the policy that’s right for you, don’t worry. Get in touch with Bethany Insurance to see how Builder’s Risk Insurance can give you extra support and peace of mind.
