Contractors constantly face challenges that can cause cost increase has, financial issues and delays. While some of these can be addressed fairly easily, others have substantial consequences that may leave a company financially devastated. Purchasing builders' risk insurance is one way that Massachusetts contractors can protect themselves from some of these risks.
Builders risk insurance is specialized social insurance that's crafted to meet the needs of contractors end construction companies. Because this is a narrow insurance product, contractors should consult with an agent who's familiar with builders' risk coverage when searching for a policy.
Most contractors and construction companies in Massachusetts ought to consider purchasing builders' risk coverage. This generally includes new home construction contractors, commercial contractors, residential remodelers, specialized contractors and others in the field.
In some cases, contractors may even be required to carry builders' risk coverage. Both lenders and customers may require coverage in order to protect themselves should a project go awry.
Builders' risk coverage is widely available for new home construction, and contractors in this particular space usually have no problem finding policies to compare.
Coverage for residential remodeling is less widely available, and many insurance companies limit remodeling coverage that they offer to only larger projects. Remodelers who would like to explore this insurance option ought to talk with a knowledgeable agent who can search for a suitable policy.
The exact supplies and equipment that a builders risk policy will cover are determined by the terms and conditions set forth in the policy. In general, supplies, tools and equipment that are on a worksite often are covered. This may include everything from basic, cheap supplies to specialized tools and expensive equipment.
Additionally, coverage isn't always limited to physical supplies and equipment. Many policies also extend coverage to labor costs associated with whatever work has been completed. This particular protection can help ensure that a contractor is able to pay its workers due wages.
The incidents that a particular builders risk policy will cover also are determined by the policies terms and conditions. Policies can broadly be categorized based on the types of incidents they cover:
Of these, special foreign policies tend to offer the most comprehensive coverage. They still typically have exclusions for risks such as war, earthquakes, flooding and similar events. Basic foreign policies usually offer the most limited protection.
Builders' risk coverage is available as a standalone policy or as part of a larger package policy. Many contractors' policies and some other commercial insurance policies offer this coverage. An insurance agent can help explore both types of policy options.
For help finding a builders risk insurance policy, contact the independent insurance agents at Garrity insurance. Our agents will work with you to assess risk exposure and find a well-suited policy. Because we're an independent Massachusetts agency, you can trust our agents to recommend the best available policy regardless of what insurance company is offering it.