Construction projects have a ton of risks associate with them. If you operate a business within this sector, you absolutely need to go above and beyond when it comes to taking out appropriate insurance. Assuming you are entirely covered by your construction general liability plan can be a huge mistake to make. There are specific circumstances that require additional coverage, meaning it can be helpful to review your options before you feel confident that your plan meets your needs.
When Is Builders Risk Necessary?
For some projects, a builders risk policy is necessary. A normal policy does not include materials or equipment. In the event of an accident, primarily bodily injury will be covered by a general liability policy. This means you’re left to eat the losses that you suffer due to damaged machinery or materials that have been completely obliterated. With a risk policy for builders, you don’t need to worry about these assets being taken from you due to a common error. Common situations where this type of policy proves invaluable can include:
- Damage caused due to fire
- Vandalism that causes cosmetic or functional damages
- Vehicles that crash into the site
Take the Extra Steps
The world of construction is filled with all kinds of unusual risks. Before you assume you are already covered with your current insurance policy, review the basics and learn what extra steps you need to take for success.