As a contractor or owner of a construction business, you’re financially invested in your projects. Any delays caused by weather or other events can financially strain your operations. With builders risk insurance, you have safeguards to address common issues that would otherwise leave you scrambling to find solutions.
Read on to learn more about this essential coverage and how it can help when unexpected complications interfere with in-progress construction projects.
Common Construction Risks
The impact of weather-related damage can be huge, leaving builders overwhelmed by the sheer magnitude of clean-up. Ice can ruin common building materials or destroy the work that may have taken weeks to complete. Sweltering temperatures in a heat wave can even melt some types of sealants.
Because weather-related problems can delay a regular schedule, a builders risk insurance plan is essential for covering indirect or soft costs. Increased interest on loans and the potential for lost sales means that every delay period is financially dangerous for construction companies.
Whether dealing with hurricanes, fires, or hail, builders risk insurance can prevent a damaging weather situation from escalating.
More Information About Builders Risk Insurance
In addition to property damage, builders risk insurance can cover issues like vandalism, explosions, and theft. Any of these issues can force you to purchase new materials or parts, which can delay critical deadlines. Insurance can help reduce the costs caused by such delays.
However, there are some limitations that policyholders should understand. Wear and tear and rust or mechanical breakdowns are not typically covered. Understanding any exclusions to your policy can help you determine what additional coverage you need.
Benefits of Builders Risk Insurance
Having customized coverage that pays for temporary structures or equipment is one benefit for companies concerned with finishing their jobs on time. When a business has builders risk insurance, the policy can minimize financial losses by paying for repairs and costs related to materials and supplies.
With this kind of protection, workers can continue their jobs without stopping, which can help eliminate delays that could cost the business.
Every day a construction company cannot operate, fees such as interest on loans or real estate taxes can pile up. Builders insurance helps mitigate these costs from covered delays and protects construction companies from incurring losses on the equipment already on the site.
Builders Risk Insurance and What It Can Do for You
An experienced insurer such as Provident Protection Plus can help you anticipate the amount of builders risk insurance you need. Discussing policy limits and reviewing the policy details can give you a clear view of whether you need additional coverage. Contact us to learn more.
About Provident Protection Plus
For more than 65 years, Provident Protection Plus has served businesses and residents across several states nationwide. Today, we are a wholly owned subsidiary of Provident Bank, the region’s premier banking institution. To learn more about our coverage options, contact our specialists today at (888) 990-0526.