Builder's Risk Insurance: Protecting Your Business


When you have a construction company or perhaps are a construction contractor, you realize there are lots of risks for damages as well as losses. A builders risk insurance policy is able to shield you from all of the things which may go bad while protecting you from financial devastation.

It does not take too much of an imagination for those in the industry to envision a collapse, water damage, vandalism, fire damage, building tools and material theft along with other related damaging mishaps. Should any of the above occur while in the midst of a construction project, a Builder’s Risk policy provides the correlated solutions.

Check out the following builder claim examples.

House collapse: The house which was being constructed by an established construction company occupied space in the middle of lowland property. It was there that the land grade slanted in the direction of the work site. Although the top had been already finished, the accompanying gutters and downspouts had not even been installed. At this stage, the heavy rains began and didn’t cease until after a month’s time. The rain caused damaging water concentration around the house foundation. As a result, the basement’s wall collapsed! Repairing the wall resulted in a 30 day pause in additional expenses and construction.

Fire Damage

A general contractor was hired to work on a tall office building simultaneously a subcontractor worked on building a staircase which resulted in the roof. The subcontractor’s welding tool let off a spark that ignited a fire. This resulted in fire damage to the roof, sheetrock, insulated ductwork and heating unit. There also was water damage as a result of the fire department’s efforts to put out the flames with the hoses of theirs.

Water Damage:

3 homes had been erected at similar site. The end home was in front of the others when its basement was completed and it was the one that might be put in place for sale first – in a half and a week. Just that day, the subcontracting plumber had installed a fire hydrant at the website. Sad to say, the plumber didn’t install it correctly. The designer received a frantic call in the midst of the night concerning flooding from the hydrant. 40,000 gallons of water leaked into the home basements, resulting in 4 6 inches of damaging standing water. The completed home suffered much more – fixture and carpet damage!