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.