Builders Risk Insurance in Massachusetts

What is Builders Risk Insurance?

Businesses that work in construction face challenges on a regular basis, and many of the problems that arise can increase project costs, cause other financial issues or delay completion. While minor issues may be addressed without too much trouble, more major issues can have lasting and substantial consequences that negatively impact a business. Builders risk insurance helps contractors in Massachusetts protect themselves from some of the challenges and problems that can arise during a construction project.

Builders risk insurance is a specialized form of commercial insurance that’s designed to meet the needs of contractors and construction companies. Because this is a specialized commercial coverage, contractors should seek advice from an insurance agent who’s worked with other companies in the construction industry when comparing policies and selecting coverages.

What Businesses in Massachusetts Need a Builders Risk Policy?

Most contractors and construction companies working on projects in Massachusetts should consider purchasing a builders risk policy. This includes homebuilders, new commercial construction companies, general contractors and others involved in this type of work. The vast majority of businesses in the construction industry are exposed to risks that a builders risk policy can help mitigate.

Often, companies aren’t only wise to purchase a builders risk policy but are actually required to. Many lenders won’t underwrite construction loans unless a business carries a minimum level of coverage.

Do Home Remodelers Need a Builders Risk Policy?

Builders risk policies are generally meant to insure large construction projects, and some smaller home remodels might not qualify for a typical policy. Remodelers who are involved in more expensive projects, however, can usually find a policy if they need one. An agent who specializes in this type of policy can help home remodelers evaluate their coverage needs and find a policy that’s right for their situation.

What Kinds of Equipment Does a Builders Risk Policy Cover?

A builders risk policy may protect a wide range of supplies and equipment depending on its terms, conditions and exclusions. Many policies will extend coverage to specialized tools, major gear, safety items, building supplies and other most company-owned equipment that’s stored at a work site.

Furthermore, policies frequently also cover labor costs associated with a project. Should a project be sidelined and a contractor unable to collect payment from their customer, this coverage might help make sure all workers are paid for what they complete before the derailment.

What Types of Builders Risk Policies Are Available?

The majority of builders risk policies that insurers underwrite can be categorized into one of three groups based on the perils they cover:

Basic form policies typically cover a limited list of risks, which may include things like fire, wind, explosions and lightning
Broad form policies typically cover a larger list of risks, which may include water damage (except flooding), falling objects and others to the basic form list
Special form policies typically cover risks as long as they aren’t excluded

Of these three categories, special form tends to offer the most robust protections.

How Much Do Builders Risk Policies Cost?

Premiums for builders risk policies vary because they’re based on many different factors. Businesses can get an accurate idea of how much they’d need to pay for coverage by talking with an independent insurance agent. An independent agent is able to request quotes from multiple insurance companies, which makes it easy to see how much different options would cost.

Even with the variance that exists among policies’ premiums, businesses frequently find that purchasing a policy is quite affordable. A monthly, semi-annual or annual premium is almost certainly more affordable than facing the financial consequences of a major problem without any protection in place.

How Can Contractors in Massachusetts Get Builders Risk Insurance?

For help selecting a builders risk insurance policy, contact the independent insurance agents at Roger Butler Insurance. Our agents have helped many contractors and construction companies in Massachusetts get the coverages they need, and we’d be happy to assist you.