The Contractor insurance protects you (the construction business) from loss caused/created during work in progress. Which can happen anytime, regardless of planning and caution.

When a third party or client informs you that there is damage on the property, you could be exposed and at risk of a lawsuit. Therefore make sure this basic coverage fits within your budget to protect against unexpected demand for repairs and claims costs.

How does a builder’s risk insurance work?

Unlike other regular property insurance that covers finished buildings and their contents, a builder’s risk insurance policy is temporary and covers projects in the course of construction.

You would rarely need this type of insurance while your project is being built; however, we recommend reviewing your policy and speaking with an agent if you have any doubts or clarifications regarding certain areas regarding your property.

There usually are several different components or issues to consider to properly prepare for such events.

No matter the kind of construction job you have planned, it’s always necessary to make sure you protect your business with adequate insurance coverage.

Because new constructions and renovations are seen as higher risk than other kinds of projects by insurance companies, it might be advisable for you to take out building risk insurance.

This covers any losses that result from a property becoming unable to fulfill its function due to an unexpected event such as water damage or dramatic weather changes; even miscellaneous activity claims could potentially be covered depending on the policy particulars.

Customers and property owners may also have coverage that can protect your business – ask your agent about this beforehand.
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https://proinsuranceblog.com/how-to-protect-your-business-with-contractor-insurance/