Builder’s Risk Insurance in St. Louis, MO

Construction companies must account for many risks and exposures throughout the entire process of a project. There is no shortage of things that can go wrong, and given the expectations for quality work on a strict timetable, even a tiny mistake or slight delay can have significant financial ramifications. That’s why one of the essential components of a construction firm’s insurance portfolio is a suitable builder’s risk insurance policy.

What Is Builder’s Risk Insurance?

Builder’s risk insurance, also known as course of construction insurance, is a specialized type of commercial property insurance. This coverage protects financial losses and damages accrued from your property being damaged during a construction project, such as building a new structure or renovating an existing one. This type of coverage is tailored explicitly for structures that are under construction and may be required by a mortgage or construction agreement.

What Does Builder’s Risk Insurance Cover?

In most cases, builder’s risk coverage will help pay for repairs or replacement costs arising from the following incidents:

·        Fire

·        Severe weather (e.g., wind, hail, lightning)

·        Criminal activity (e.g., theft, vandalism)

·        Motor vehicle accidents

·        Explosions

Builder’s risk insurance protects property integral to your company’s project, including but not limited to the following:

·        Structures

·        Materials, including those in transit or stored off-site

·        Documents and data (e.g., blueprints, specifications)

·        Temporary structures (e.g., scaffolding and signage)

Your builder’s risk policy may also include coverage for soft costs arising from construction delays, such as architect fees, government penalties, additional real estate taxes and cleanup costs.

How Much Does Builder’s Risk Insurance Cost?

When writing a builder’s risk insurance policy, providers must consider the specific circumstances of your company and the project at hand. In most cases, you can expect the following criteria to be considered:

·        Assessed value of the completed project

·        Materials being used

·        Total cost of labor

·        Workforce size

·        Policy details (e.g., coverage limits, deductibles)

Get the Right Coverage

Although builder’s risk may be an integral part of any construction company’s insurance portfolio throughout any project, this type of coverage can also be complicated and easily misunderstood. Regardless, your business must take the time to assess and address these risks and exposures. Without an adequate policy, even a single error could have devastating financial consequences.

Fortunately, the agents at Crawford-Butz Insurance have over 60 years of experience helping businesses in the St. Louis area understand their coverage needs. We will work with you to analyze the details of your company and project to ensure that your builder’s risk policy provides optimal protection. Contact us today to get started.