Builder's Risk Insurance.

As a contractor, you are responsible for managing construction projects and ensuring that they are completed on time and within budget. While you are working on a project, there is always a risk that something could go wrong, whether it's due to weather, theft, or some other unexpected event. That's where builders risk insurance comes in.

Builders risk insurance is a type of insurance policy that provides coverage for the materials, equipment, and other property involved in a construction project. It can help protect you and your business against losses resulting from fires, storms, vandalism, and other perils that could damage or destroy your construction site.

Builders risk insurance is typically purchased by the owner of the property being constructed, but as the contractor, you may also have an interest in making sure the project is properly insured. If something goes wrong and the project is not insured, it could result in delays and additional costs for you. By making sure that your projects are properly insured, you can help protect your business from financial losses and keep your projects on track.

Any individual or company involved in the construction of a building should consider purchasing builders risk insurance. This can include the owner of the property, the general contractor, and subcontractors.

Coverage can be placed by either the building owner or the general contractor. Both can purchase C.O.C. coverage for a project. Ultimately, the interest of both the owner and their contractors is covered under this policy.

Yes, it is possible to purchase builders risk insurance after construction has already begun. However, it limits the number of insurance companies that are able to provide a quote and it is best to purchase insurance before starting the construction project to ensure that you are fully covered from the start.

Typically used by builders, contractors, and developers to protect their interests in a construction project. If you are not a builder or involved in the construction industry, you may not need builders risk insurance. However, sometimes a builder will require you to purchase the insurance if it is stipulated in your contract.

If you are planning to undertake a home renovation or construction project on your own, you will want to consider purchasing builders risk insurance to protect your investment. Your existing home policy may cover some renovations but is not usually the best solution for large renovations.

Builders Risk Insurance is a specific type of property insurance that covers the building project and materials during construction, whereas Property Insurance covers the completed structure after it has been built.

Builders Risk Insurance typically includes coverage for damage from fire, theft, vandalism and certain weather events such as hail and windstorms. Property Insurance may include coverage for additional risks such as liability and flood damage, depending on the policy.  Property Insurance also typically includes coverage for contents of the structure such as furniture, appliances and personal belongings. Builders Risk Insurance is generally purchased by contractors or property owners who are renovating, constructing a new building or making additions to an existing structure. Property Insurance is usually purchased by individuals or businesses who own or occupy a completed structure.

If you want to work with a commercial insurance brokerage that puts people first and values transparency, sustainability, ownership, and impact, then Summit is the right choice for your business insurance needs.

At Summit, we craft innovative insurance solutions that are custom tailored to your business, giving you the confidence you need to succeed. Our team is dedicated to building trust and creating value through open and honest communication. We are in it for the long haul and strive to make a positive impact in everything we do.

So if you want a business insurance partner that shares your values and is committed to helping you succeed, consider working with Summit.

Builders risk insurance, also known as course of construction insurance, is a type of insurance specifically designed to protect against risks that can occur during the construction of a new building or the renovation of an existing building.

Builders risk insurance covers the building under construction, as well as materials, equipment, and other property used in the construction process.

Builders risk insurance can provide protection against a variety of risks, including:
Property damage: This covers damage to the building under construction, as well as materials, equipment, and other property used in the construction process. It can include coverage for losses due to fires, storms, and other natural disasters
Liability: This covers claims made against the builder for accidents or injuries that occur on the construction site. This can include medical expenses, legal fees, and other damages incurred as a result of the accident.Business interruption: This covers lost income and extra expenses incurred if the construction project is delayed or suspended due to an insured event, such as a natural disaster or vandalism.
Theft: This covers losses due to theft of materials, equipment, or other property used in the construction process.

Builders risk insurance policies can be customized to meet the specific needs of the construction project, and it's important for builders to work with a knowledgeable insurance broker or agent to determine the coverage options that are right for their project.

All contractors should carry their own liability insurance policies. Still, it can be difficult and time-consuming for a general contractor or a project owner to chase down every sub-trade to make sure they have coverage on large builds. A wrap-up liability policy is a one-time, project-specific business liability policy that provides coverage for all parties involved in the project. Those include the owner, general contractor, contractors, sub-contractors, consultants and suppliers who perform work on the project site. It’s a safer and more time-effective way to ensure that nobody on your job site is uninsured against claims for third-party damage or injury.

Some benefits of wrap up liability are:
Certainty that all parties involved in the project have uniform business liability insurance coverage, limits, and deductibles.

Eliminates the administrative headache of collecting and managing Certificates of Insurance from each and every party involved in the project.

The claims management process is simplified with a single wrap-up policy vs. multiple insurance policies carried separately by each and every party involved in the project.

Soft costs, also known as "soft expenses," are non-structural costs that cover the cost of business-related items such as permits, contractor fees, labor and materials. These typically include intangible items like time spent on obtaining permits and other preparatory tasks or expense related to contractor oversight. Soft costs can be covered under a builders risk policy, since they are considered part of the overall cost of the construction project.

Hard costs, also known as "hard expenses," are direct structural costs related to the actual materials and labor used during a construction project. These include items such as lumber, nails, concrete, steel framing and other physical components needed for the completion of a building. Hard costs are generally not covered under a builders risk policy, as they are typically acquired and paid for separately by the builder or owner. This is due to the fact that hard costs are much more easily determined, and are usually of more immediate concern than soft costs.

The cost of builders risk insurance varies depending on a number of factors, such as the location of the construction site, the value of the materials being used, and the type of construction being performed. In general, the cost of builders risk insurance is based on a percentage of the total value of the construction project. It is important to work with an insurance broker to get a variety of options from different insurers for builders risk insurance for your specific project.