Builders risk insurance is essential for mitigating financial liabilities during construction projects. When unforeseen challenges force construction companies to delay or cease work, it could provide valuable protection against any financial consequences. Working with a builders risk insurance wholesaler could help agencies secure large construction companies as clients, which usually need many additional coverages.
With broad market access and industry expertise, working with a builders risk specialist could help agents ensure they’re providing the best coverage for the most competitive price available. As a leader in the industry, we have the experience to address the unique exposures your client’s project may present.
Builders risk coverage is primarily purchased by owners of the real estate property or by the general contractor managing the project. These projects can be anywhere from a renovation project, to a ground-up new construction project for residential, or commercial properties of all sizes and installation floaters. As an industry leader with some of the broadest market access available, Telamon can help ensure you’re providing your clients with a competitive insurance offering.
Occasionally, smaller contractors might also want this coverage. This is less common, though.
Offering builders risk can help agencies gain larger construction companies as clients. These companies usually have many and varied coverage requirements.
Builders risk insurance mainly covers assets, often including equipment, materials and completed work, that are at a construction site. Specific assets that might be covered are:
A diverse array of large-scale commercial construction projects can benefit from builders risk insurance, such as:
Builders risk is best placed under the owner of the property name or entity. Otherwise a policy written under the contractor’s name can become challenging if the real estate owner ops to change contractors mid-project. However, a developer or general contractor with ownership interest overseeing projects, does typically purchase the coverage under the ownership entity.
Builders risk insurance may safeguard construction projects against numerous risks such as adverse weather, lightning, water damage, fire, smoke, vandalism, theft and other perils.
In general, coverage perils vary by carrier and terms which is why it’s important to choose a wholesaler that can help you identify the best coverage options for your client’s budget.
Many builders risk policies can be extended one time if there’s a significant delay. Fewer policies can be extended multiple times. If multiple extensions are needed, it’s often necessary to find a new policy (which may have different rates or terms).
Agents should be familiar with how many times the policies they offer can be extended.
Builders risk coverage can be complemented by a wide range of other protections. Many construction companies needing this insurance also may need general liability, commercial property, commercial auto, inland marine, equipment and umbrella coverages, among others. Workers compensation is frequently needed, too.
To speak with a builders risk insurance wholesaler, connect with us at Telamon Insurance. Our team has helped many insurance agencies find product lines that set them apart, and we can assist yours too.
