As a builder or contractor, you are probably in business for yourself. As a result, protecting your investment is very important. SB One Insurance recommends carrying two types of insurance to provide the most financial coverage in the event of a situation involving loss. These policies are general construction liability and builders risk insurance.
One Size Can’t Fit All
Unlike the work gloves or tool belts where one size might fit all, the risks and exposures of each contractor, the location, the materials, the cost, and the weather will all vary by the job site. With a general liability policy, only a part of these risks will be covered. These usually include injury on the property, damaged rental space, employee-caused injury or damage, and legal action for false advertising or libel.
In addition to general liability, builders risk insurance can fill in some of the gaps in exposure and risk associated with your operations. Coverage extends to the damage done to the property or your equipment for the following reasons:
Fire or explosion
Any vehicles that crash into the structure
To be sure your contracting company is well-equipped to handle the risks and exposures consider the benefit of a packaged policy concerning risk and general liability. It is always better to have too much coverage than too little.