What is Builders Risk Insurance?
Many construction projects are plagued with cost increases and delays that negatively impact contractors working on these projects. Minor project issues might be resolved with relative eases, but major problems can financially stress a contracting company or even potentially lead to bankruptcy. For contractors in Vermont, builders risk insurance offers protection against some of the negative effects that covered problems can cause.
Builders risk insurance policies are specialized commercial policies that have been designed to meet the needs of contracting companies that work on construction projects. At times, the insurance is also referred to as “course of construction insurance.”
What Vermont Businesses Need A Builders Risk Policy?
Many contracting and construction companies in Vermont can benefit from having a builders risk policy. Whether building a brand-new structure or remodeling an existing structure, the challenges that come with construction aren’t limited to any one type of work and a policy can help protect most types of projects.
In certain situations, contracting companies that finance their construction projects may be required by the terms of their loan to carry this insurance. Lenders often include such a requirement in loans so that the lender is protected if something happens to a project while it’s in process.