Solutions to Builder’s Risk Coverage
Builder’s Risk Coverage: Understanding the Policy Period
• Understand the insurance coverage obligations of the project documents and contracts to ensure the policy period, at a minimum, fulfills the requirements.
• Understand the terms and conditions of the policy and what triggers the coverage to commence and cease.
• When coverage ends make sure permanent coverage is in place so no gaps in coverage exist.
Careful planning is the foundation for a smooth construction project, which includes the right exposure coverages. Many businesses choose to transfer or accept risk through contracts, purchase orders and lease agreements. However, not all contracts or endorsements are created equal.
Construction projects, regardless of their size, can present complex insurance issues. Are you confused about your exposures and policy options? If so, it’s no surprise—there are no standard builder’s risk policy forms covering these types of risks. To help you limit your exposure, here are some helpful builder’s risk policy basics.