A construction project can be a great way to grow your business, but it can also be very costly if something goes wrong. Without builder’s risk insurance, you could be on the hook for millions of dollars in damages.
In this blog post, we will discuss some of the potential dangers and costs associated with construction projects without builder’s risk insurance. Read more to find out how builder’s risk insurance can protect your business!
Potential Dangers of not Having Builder’s Risk Insurance
There are a number of potential dangers that come with building without insurance. One of the most obvious dangers is the risk of financial ruin if something goes wrong. If you are not insured and something catastrophic happens, you could be responsible for paying for all of the damages out of pocket. This could easily bankrupt your business.
Another danger of building without insurance is the risk of losing customers. If you are not insured and something goes wrong with the construction project, your customers could hold you responsible. This could lead to them taking their business elsewhere, damaging your reputation and resulting in lost business.
Potential Costs of Building Without Insurance
The potential costs of building without insurance are astronomical.
Some of the potential costs you could incur without insurance include:
- The cost of repairing or rebuilding the damaged property
- The cost of replacing any damaged equipment
- The cost of lost revenue if your business is forced to close while the repairs are being made
- The cost of legal fees if you are sued
- The cost of medical bills if someone is injured on the property
What Does Builder’s Risk Insurance Cover?
Builder’s risk insurance protects your property during construction or renovation. This policy will come into play should your property sustain physical loss or damage from a covered situation. It typically does not cover disasters such as earthquakes, floods, or hurricane damage unless the policy has been specifically endorsed to do so.
These policies can be endorsed to cover accidents and injuries to a third party (general liability) and are intended to terminate when the work has been completed, or the property is ready for use or occupancy. Coverage items include but are not limited to:
- Materials
- Fixtures
- Equipment (awaiting installation or after installation)
- Structure
- Valuable papers
- Architect/engineer costs
- Debris removal
How Long Does the Construction Process Take?
The construction process can take a long time, depending on the size and scope of the project. If you are not insured, you could be forced to wait for repairs to be made, which could take months or even years.
If you take the time at the beginning of the process to get builder’s risk insurance, then you can start your project with peace of mind knowing that your business is protected and the process will run smoothly despite potential dangers.
Reach Out to the Professionals at Bethany Insurance
If you are interested in learning more about builder’s risk insurance, reach out to the professionals at Bethany Insurance. We would be happy to answer any of your questions and help you find the right policy for your business. Give us a call today!
