Builders Risk Insurance

What is builders risk insurance?

Builders risk insurance is insurance coverage designed specifically to protect buildings and structures that are under development, renovation or construction as well as the equipment being used in the construction project. Builders risk coverage can include protection for construction materials, heating and air-conditioning equipment, labor costs and expenses as well as temporary structures such as cribbing, false work, fencing, scaffolding, construction signs and even trees and other plants.
 
In addition to the materials, labor and expenses coverage, builders risk insurance also helps cover the costs of debris removal and defective workmanship. A builders risk insurance policy from The Hartford helps cover the owner, the general contractor, subcontractors, and the financing bank.
A builders risk insurance policy from The Hartford includes coverage for things like:
 
  • foundations
  • underground pipes
  • wiring
  • machinery
  • fixtures
  • temporary structures
  • cribbing
  • false work
  • fencing
  • scaffolding
  • construction signs
  • trees, shrubs, sod and plants
  • labor expenses
  • debris
  • profits
  • and more

Profits. Builders risk insurance covers more than just labor, materials and equipment that are needed for new construction project; it can cover profits as well. With The Hartford's builders risk coverage and heavy equipment insurance, contractors can be reimbursed for the pro rata percentage of profit earned as of the date of the loss – based on the profit assumptions included in the job estimate.
 
Modular Components. Businesses often store important and expensive materials and equipment in off-site modular units. With builders risk insurance from The Hartford, such modular units and components are covered while they are being used for temporary storage or in transit. Location of the storage unit does not need to be listed in the builders risk insurance policy.
 
Testing. Construction and contractor businesses often test out newly installed equipment. In the event of a physical loss caused by electrical, mechanical, pneumatic and hydrostatic testing, The Hartford’s builders risk insurance policy can help cover the costs of the loss. Broader testing coverage can be added to the builders risk insurance policy to include boilers, production equipment, pressure vessels and power generation equipment.
 
Property of Others. Most builders risk coverage and heavy equipment insurance policies limit coverage only to the property owned by the policyholder. With builders risk and heavy equipment insurance from The Hartford, construction and contracting businesses are covered for the property of others while it is located on their site.
 
Valuable Papers and Electronic Data. Contractors and construction companies rely on blueprints, schematics and other paper and electronic documents and data in the course of conducting their business. Builders risk insurance from The Hartford provides up to $100,000 to research, restore and replace important documents and electronic data that were lost in a covered risk.
Property Replacement. The Hartford’s builders risk provides replacement cost coverage equal to the value of the property owned. Having the right valuation clause is an important aspect of protecting a business’s insurable interest in a project. Other insurers’ valuation clauses may not allow for adequate funding to cover the cost of new materials after a loss. The Hartford’s builders risk insurance provides replacement cost coverage equal to the value of the property you own – without a deduction for depreciation.
 
Debris Removal. The cost associated with cleaning up debris after a construction accident can be enormous. The Hartford’s builders risk insurance policy covers up to the first $100,000 in full (subject to the policy deductible), or if the expense is greater than $100,000, 25 percent of the amount payable up to a maximum of $1 million. Businesses have up to 180 days to report the loss.
 
Pollutant Cleanup and Removal. When a fire or other covered cause of loss occurs at the project site, pollutants may be released causing damage to land or water. When this happens, our builders risk policy covers legally imposed expenses you'll have, up to $10,000 for any one occurrence and $25,000 per policy year, to remove or extract pollutants from land or water.
 
Escalation Clause (Optional). The cost of building materials and labor can fluctuate significantly from the start of a project through its completion. To protect contractors from unanticipated increases in cost, The Hartford offers optional coverage that can be added to a builders risk policy to provide an additional $500,000 limit in the event of a total loss for the increased cost of labor, materials or changes in construction specifications.
 
Ordinance or Law. Building codes and requirements can change a great deal from the start of a project through its completion. In the event that an ordinance or law changes during the construction project and causes a delay or loss in profits, builders risk insurance will help cover that loss.
 
Contract Penalties. The Hartford's builders risk and heavy equipment insurance policy provides up to $50,000 for written contract penalties that a business is required to pay in the event that it is unable to complete a project do to covered risk.
 
Expediting Expense. Builders risk coverage and heavy equipment insurance from The Hartford provides up to $25,000 for additional costs that a business may incur in order to meet a deadline after a covered loss. These costs can include expedited shipping replacement parts, materials, additional staffing and labor, and rental expenses for additional equipment.
 
Architects and Engineering Expenses. Businesses can add this coverage to The Hartford’s builders risk and heavy equipment insurance to cover the costs incurred to engage the services of architects and engineers following a covered loss.
 
Fungus, Wet Rot, Dry Rot, Bacteria, and Virus. Our builders risk coverage and heavy equipment insurance policy pays up to $100,000 for property that is destroyed or damaged by fungus, wet rot, dry rot, bacteria or virus.
Using environmentally safe materials, as well as constructing energy-efficient and eco-friendly buildings are becoming more common. The Hartford’s builders risk and heavy equipment insurance automatically extends to include:
 
  • Coverage for building commissioning expenses for a qualified engineer to supervise the repair or replacement of covered property and recertification fees to apply to the Green Authority, to certify or re-certify covered property to its pre-loss budgeted level of certification
  • Additional limits for debris recycling expense to divert debris of covered property to recycling facilities rather than landfills
  • Indoor air quality expense to ventilate or flush out air systems to meet or restore indoor air quality to the standards established in your pre-loss indoor air quality management plan
  • Vegetative roofing
Broad Coverage. The Hartford’s builders risk insurance offers up a wide array of benefits and flexible options for construction and contracting businesses of all sizes. Our builders risk and heavy equipment coverage is designed to meet the unique needs of property owners and contractors whether they are working on offices, schools, roads, medical facilities, warehouses, or other structures.
 
Single Deductible. We make it easy for businesses to handle their claims with benefits such as our one deductible policy. If multiple deductibles apply to the same loss, we will only apply the largest applicable deductible to the item for which the claim is made.
 
Claims Excellence. Construction and contracting businesses can rest assured they are getting expert service when they make a claim. Our business risk specialists have the knowledge, experience and authority to handle claims of all sizes. Our customers consistently rank their claims experience with The Hartford highly – among the highest in the industry.
 
Risk Consultation. Our business risk engineering specialists at The Hartford offer construction loss control consultations and can work with construction and contractor businesses on plans and recommendations to help them operate more safely and avoid losses accidents and losses.
 
Talk to an agent today to find out how The Hartford builders risk and heavy equipment insurance can help protect your business.

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