What is Builders Risk Insurance?
Construction projects regularly face challenges that contractors must address. While some challenges may be minor and easily taken care of, others can turn into major problems that lead to delays, increased costs, upset clients and, in some cases, severe financial hardships for contractors. Certain problems might even force companies into bankruptcy if there’s no protection against these challenges in place. Builders risk insurance helps contractors in Massachusetts prepare for and protect against certain covered challenges that can arise during construction projects.
Builders risk insurance is a highly specialized form of commercial insurance that’s designed for contractors and construction companies. These businesses might purchase a policy as a stand-alone coverage or as part of a multi-coverage commercial insurance policy. Many contractors insurance policies make the coverage available, and commercial package policies might also offer it.
Who in Massachusetts Needs Builders Risk Coverage?
Most contractors who construct structures from scratch or perform major remodels should consider getting a builders risk policy.
Companies working on financed projects usually are required by the lender’s terms to carry coverage. Contractors who are in this situation normally have to purchase a policy that affords at least a minimum amount of coverage.
Companies that aren’t working on financed projects might not technically be required to carry coverage, but having a policy in place is normally still a good idea. Few contractors in Massachusetts can afford to have a major project go awry without any protection in place.