Construction companies constantly face challenges, and they often have to address cost increases or delays to projects. While minor problems might be addressed without significant trouble, major ones can have significant negative consequences for a business. Builders risk insurance can help Massachusetts construction companies shield themselves from some of the larger problems that may arise during a project.
Builders risk insurance is a specialized commercial insurance that’s designed specifically for construction companies and similar businesses. Because the insurance is so specialized, companies should work with an agent who’s well-versed in this type of insurance when selecting a policy.
Many construction companies and contractors can benefit from the protections that builders risk coverage affords. This may include both in-state and out-of-state companies that are working on projects in Massachusetts. Some specific examples of different companies that might want the insurance are:
Not having this insurance can leave a company unnecessarily exposed to risk, and some companies may even find their work restricted if they don’t procure coverage. Some lenders will refuse to underwrite construction loans unless a company meets minimum coverage requirements.
Builders risk coverage normally is designed to meet the needs of construction companies that work on large projects, and many smaller residential remodelers might find that they don’t meet coverage requirements. Remodelers who have sizeable projects and want coverage, however, may be able to find a suitable policy with the help of a knowledgeable agent.
Builders risk coverage usually extends protection to a range of equipment, tools and supplies. While any given policy’s precise protections will depend on the policy’s terms and conditions, many policies will protect specialized tools, large equipment, safety gear, smaller tools, building supplies and other company-owned items. These items are typically covered while they’re at a construction site.
In most cases, builders risk coverage will also extend coverage to labor costs that are associated with a construction project. If the project is canceled and the construction company can’t collect payment, builders risk may help pay workers what they’re owed.
Builders risk policies come in several different types. Many policies fall into one of three categories:
Premiums for builders risk coverage are dependent upon multiple factors, and what different construction companies pay for this insurance varies. To get an accurate idea of how much coverage for a particular company or project will be, construction companies can ask an independent insurance agent to help them obtain quotes. Independent agents are able to request quotes from multiple insurers, which makes comparing available rates quick and easy.
For help finding builders risk insurance, contact the independent insurance agents at The Feingold Companies. We’ve worked with many Massachusetts construction companies and contractors to get them the insurance they need, and we have the expertise necessary to help you find a builders risk solution that’ll serve your company well.