At the beginning of there are many considerations for all parties involved. Choosing the right type of commercial insurance is essential. One option to consider is builders liability insurance coverage.
1. What Does It Cover?
This type of insurance is purchased to protect a building under construction from financial loss due to unexpected circumstances. It can provide coverage for property damage, as well as building materials, supplies and equipment. The foundation of a successful risk management program is often this kind of an insurance policy. Covered instances may include:
- Weather events
2. Who Should Obtain It?
The property owner often purchases builder’s risk coverage, although it could also be obtained by the general contractor or a developer. Regardless of who purchases the policy, anyone involved in the project should be on it, such as:
3. How Long Does Coverage Last?
Coverage typically starts at the beginning of the project and continues throughout the duration of the work. A policy also may end in several other instances:
- When an occupancy certificate is issued
- When the building begins to be used
- When the policy is canceled
Taking all these factors into consideration can be the key to selecting the right type of insurance for a building construction project. Making the right decision is an important step to ensuring the project’s success.