Builders insurance is an exclusive coverage that protects building owners, builders and contractors from risks that may arise while construction of a property. Construction involves an array of risks that are unpredictable; therefore, it is essential to get insurance protection for workers, property, location and other liabilities that are a part of the construction site.
Important covers to consider while purchasing the policy
Whether it is a new construction or renovation of the existing building, make sure the policy covers all the necessary things that are prone to risks. While considering builders insurance policy, it is very important to consider a comprehensive policy that covers the following:
Property insurance protects against risks to property resulting from fire, theft, vandalism, wind, flood, earthquake, etc. Before deciding on the coverage, it is very important to insure existing structure and the new construction for renovation projects. For new constructions, coverage for foundation, site preparation, excavations, scaffolding, etc. should be considered.
Look for the personnel covered in the policy. It should invariably cover all workers including the building owner, contractors, sub-contractors and material suppliers. In the event of liabilities because of an injury to any of these, the insurance will recompense them.
The building owner or contractors is/are entirely held responsible by law for whatever happens in the course of construction. Therefore, the construction site and property in transit should be specifically included in this coverage.
As a builder, you are at risk of facing liabilities from employees as well as the public. It is, therefore important to have public liability and employers liability in place during the time of construction to cover for the claims that may arise due to the negligence of building owner, contractor or any other employee.
Approach a reputed brokerage firm to get a policy that covers all your risks
You may find it hard to determine an insurance cover that is suitable for all your needs, as the issues involved are not that simple. Also, the amount of insurance needed varies across builders depending on the size of business, number of contractors, employees, materials used, etc. Therefore, it is better to take expert advice of reputed brokerage firms. It is also important to know that certain risks are not covered by builders’ insurance. Again brokerage firms will be of great help here. Brokerage firms will also help during the claims. Therefore, it is better to take advice from reputed brokerage firm to get a comprehensive builders insurance policy.