Builders Risk Insurance in Massachusetts
What is builders risk insurance?
Construction projects come with many risks that can obstruct or completely halt completion. In the event of progress being slowed or stopped, builders risk insurance may provide Massachusetts contractors with crucial financial protection.
Builders risk insurance provides specialized coverages for construction projects while they’re in process. Should a project be affected by a covered peril, the insurance may help all involved parties.
What Massachusetts contractors can benefit from having builders risk coverage?
Any party to a large construction projects may want builders risk coverage. Massachusetts general contractors, developers, subcontractors, financing lenders, and property owners might get a policy.
Contractors are typically the ones to purchase a policy, as they’re often held liable if a project fails before completion. Lenders and owners might require contractors to obtain coverage when working on a large project, and contractors should think about coverage even when it’s not mandatory. Less frequently, lenders or property owners themselves might secure coverage.
What assets do builders risk policies provide coverage for?
Builders risk policies can offer coverage for equipment, supplies, and completed work which is damaged by a covered peril. Equipment and supplies are generally covered when they’re at the job site.
Specifically what items can be covered are determined by a policy’s terms and conditions. Depending on the particulars, coverage might apply to:
- Heavy, large, and specialized equipment
- Standard tools, specialized tools, and safety gear
- Materials and supplies
- Structures being built
When structures are covered, covered structures might be limited to certain types or more broadly encompass most types. An insurance agent experienced in builders risk policies can assist stakeholders in making sure that a chosen policy covers all necessary equipment, supplies and structures.
What types of projects are builders risk policies available for?
Builders risk policies can be purchased for large construction projects. They might be used when building residential developments, multifamily residential buildings, commercial or industrial buildings, as well as major additions or remodels of these buildings. Policies are often also accessible for public works projects as well, and sometimes for significant hardscaping or landscaping undertakings.
Policies are less likely to be purchased for the construction, addition, or remodel of a single house. If coverage is wanted when working on a single-family home, an experienced insurance agent might be able to source a policy.
What kinds of perils are covered by builders risk policies?
Builders risk policies may cover an array of perils, possibly including water damage, weather, vandalism, theft, fire and other risks. Named perils policies typically list the perils they cover, while open perils policies generally cover perils except those listed as exclusions. Open perils policies usually provide more extensive protection.
To understand exactly what a specific policy covers, contractors should review the policy with a knowledgeable insurance agent.
How can builders risk coverage be obtained?
Builders risk coverage can be acquired in several ways, depending on a contractor’s other insurance needs and a project’s details. The coverage is available through standalone policies, but most purchased it as part of a package policy.
Less often, builders risk may be added to a single coverage through an endorsement. An endorsement integrates specific protection onto a policy, for a relatively nominal increase in premium.
How can contractors in Massachusetts obtain builders risk insurance?
For assistance in covering a Massachusetts construction project with a builders risk insurance policy, reach out to the independent insurance agents at Pike Insurance. Our agents have helped secure insurance for many construction projects in the state, and we have the expertise to help you find builders risk coverage that’s a good fit for your project.
