In the construction world, not being protected adequately under insurance policies can be your biggest downfall. With so many insurance policies available to you, including the builder's risk course of construction policy, how do you know exactly what constitutes "proper coverage"?
While discussing this with your insurance broker is always advisable, doing a bit of research on your own is also a good idea. If you work in the construction field, then it is very likely that your broker will recommend purchasing a builder's risk course of construction policy. If you are unfamiliar with this policy, here is what you have to know: This policy is a type of property insurance that covers a building in construction for a certain period of time. Generally, the policy can be purchased to cover a building over the course of several months up to a year.
So what exactly does this policy protect your building from? Quite simply, it protects the actual building and any insured materials within its vicinity from disasters such as fire and vandalism. Should the structure or the items sustain damage from a covered cause, then the insured can count on the insurance company to cover the damage incurred.
For many people, this policy is absolutely mandatory... especially if they are working on a big project. Whether or not you actually are in need of it depends on a few factors, among them the size of the project you are working on and whether or not it is already covered. Once again, we recommend spending some time discussing this policy with your insurance broker before making any final decision.