Considering a 12-Month Builder’s Risk Policy
Builder’s risk insurance provides financial protection over a builder or another insured area that is currently under construction. As a contractor, it is important that you secure this coverage before you commence work on a building site. A builder’s risk policy provides protection for contractors because it reduces the risk of loss should a covered event take place. The policy will often be short-term; available as three-month, six-month, or 12-month plans. Although you may consider the shortest term length with the hope to save money, here is why you should consider a 12-month policy.
You may not expect delays and assume that you can get the work completed well within a 3 or 6-month period. However, accidents happen and it’s not uncommon for construction to be held up for weeks and months because of an issue overlooked or an unforeseen aspect. Protecting yourself from the unexpected is what insurance is all about. In some cases, coverage may be needed for a longer period due to construction or sales delays.
In essence, it makes more sense to purchase a longer-time policy as a new construction insurance client rather than opt for a short-term policy that calls for more frequent renewals. This allows you more time to focus on the task at hand and gives you peace of mind that you’re protected, whether there are delays or not.