What is Builders Risk Insurance?
Construction companies constantly face challenges, and they often have to address cost increases or delays to projects. While minor problems might be addressed without significant trouble, major ones can have significant negative consequences for a business. Builders risk insurance can help Massachusetts construction companies shield themselves from some of the larger problems that may arise during a project.
Builders risk insurance is a specialized commercial insurance that’s designed specifically for construction companies and similar businesses. Because the insurance is so specialized, companies should work with an agent who’s well-versed in this type of insurance when selecting a policy.
What Massachusetts Businesses Should Have Builders Risk Coverage?
Many construction companies and contractors can benefit from the protections that builders risk coverage affords. This may include both in-state and out-of-state companies that are working on projects in Massachusetts. Some specific examples of different companies that might want the insurance are:
- General contractors
- New commercial construction contractors
- New homebuilders
- Other construction companies
Not having this insurance can leave a company unnecessarily exposed to risk, and some companies may even find their work restricted if they don’t procure coverage. Some lenders will refuse to underwrite construction loans unless a company meets minimum coverage requirements.