Do you know that builders risk insurance does more than protect the building you are working on? Most contractors understand the value of a builders risk policy when it comes to the building itself; after all, paying out of pocket to repair a damaged structure could be devastating to your budget. But the protection of builders risk coverage goes beyond the structure, protecting the materials and equipment you need to complete the project itself.
Protecting Your Tools & Equipment on the Project Site
Your equipment is important to you, and it’s critical for getting the job done. And it doesn’t always make sense to transport your tools and equipment to and from the project site every day either. Your builders risk insurance coverage extends to your equipment, protecting your tools from many of the risks they face while they are on the site.
Let’s say you are renovating a residential home, adding a new master suite above an existing garage. You’re leaving some compressors, table saws, and other tools locked in the garage at the end of the day.
Or so you thought.
When you arrive at the project site one morning to find the unlocked garage door wide open, and your high value tools missing, your builders risk policy will most likely cover the loss. (Which is a relief, since your client’s homeowner’s policy isn’t going to foot the bill.)
The new excavator that you bought this year has been a sound investment. But when you drive by your project site on a Sunday morning and see that it is gone, you can’t help but start calculating the costs even as you call the authorities and report it stolen.
If you have builders risk coverage, the loss gets a lot less complicated. Instead of adding up what it will cost you to replace the heavy equipment, plus the other soft costs associated with the theft, all you need to worry about is filing a claim and paying your policy deductible.
Your builders risk policy is your safety net that protects your tools and equipment stored on a project site.
Protecting Your Materials & Supplies On- site
You’ve won the bid for a new construction commercial retail space, and your contract states that you are responsible for obtaining a builders risk policy (with your subcontractors added as named insureds). You’ve begun work, and everything is right on schedule.
Unfortunately, one morning you arrive on site to find that your metal materials have been stolen off the project site. Copper wiring, aluminum I-beams and flashing that you thought were securely locked up are now gone without a trace.
Construction site theft is nothing new. Theft and vandalism are the most common crimes in construction, and replacing expensive materials or stolen equipment can lead to substantial unforeseen project costs.
Protecting Your Off-site Materials & Supplies
What about the materials and supplies that haven’t made it to your project site yet? You may not realize it, but you can add coverage for materials in transit to your builders risk insurance policy. And if any of the following circumstances happened to you, you’d be glad you did:
- A load of ceramic tiles falls of a truck on the way to your project site, shattering all over the freeway.
- Your insulation materials are stored off-site, but a leaky ceiling and sudden rainstorm causes irreparable water damage before they can be installed.
- The copper wiring being transported to the project site is stolen right off the truck in broad daylight at a gas station.
- Vandals have a field day expressing themselves artistically, “decorating” the cement masonry that you’ve stored off-site with spray paint.
Adding coverage for materials in transit to your builders risk insurance can give you an extra layer of protection against unexpected risks to your tools, equipment, supplies, and materials. Because it’s not always the materials that have already made it to the site that need protection.
Construction site theft and vandalism are, unfortunately, all-too-common. Unforeseen emergencies, like an electrical fire, can happen to anyone. Mother Nature could unleash a destructive windstorm, or hail the size of baseballs without notice. These are risks that every contractor faces on every project.
Replacing the materials, supplies, equipment, or tools needed to complete a job in the face of one of these situations could be devastating to your project budget. If you had to reach into your own cash reserves to replace stolen equipment or vandalized supplies, it could eat up all of your profits or worse. Luckily, your builders risk policy can extend protection to your tools and materials, on site, off site, and even in transit.