Every construction company should invest in builders risk insurance, or construction insurance. This protects buildings under construction as well as other unfortunate events. Although this insurance can help save your projects, it can become tricky or misunderstood, which is why it is important to thoroughly go through this insurance and make it a part of your risk management program. 

What Does it Cover?

Each insurance plan is different, but generally they cover the following:

• Fire
• Lighting
• Hail
• Explosions
• Theft
• Vandalism
• Other natural disasters

Who Needs it?

Typically, anyone or business who is actively invested in construction projects should invest in builders risk insurance. This includes property owners, contractors, lenders, subcontractors and architects. 

What is Protected?

Along with construction sites or projects, builders risk insurance will also cover materials used, supplies needed and equipment onsite, in transit or at other locations. This means if something happens to any of these items, the insurance will replace any damaged materials or equipment. 

Exclusions

Depending on the plan you get and the provider, some exclusions may apply. Things such as wear and tear, rust or corrosion, employee theft, planning or mechanical breakdowns are not covered by construction insurance. 

Cost

The general rule to follow when it comes to a good price for this insurance is that you should choose a plan that has a coverage limit of the estimated construction cost of your project. So, if your construction project is more expensive, your insurance plan should also have a high rate. 

There are lots of things to consider when choosing a construction insurance plan. It is crucial to have this insurance as it will be the backbone and safety net for any of your construction projects. 

Here at Jerdon Enterprises, we offer professional construction services. View our portfolio to check out projects we’ve been involved in, as well as our services to see what we can do for you. Have a question regarding employment opportunities or to discuss a potential project, contact us today!