Construction is big business in the United States, and it's booming. Due to this fact, the market for builders risk insurance has soared. Yet many insurance agencies have not been able to turn this potential source of considerable revenue into any type of profit.
Many cite the lack of insurance agencies offering builders risk insurance to the unique nature of these policies. Every single carrier offers different types of policies, and many find that builders risk plans tend to be significantly more complicated than other property policies.
Plus, a single construction company may be required to hold numerous different types of policies. This can be confusing for even the most knowledgeable contractors. As such, it's important to pay attention to recent trends in the industry. This will ensure you can accurately obtain builders risk coverage for your business:
1. Flexible Limits
Demand has skyrocketed for flexible limits regarding builders risk coverage. Changeable limits are vital for ordinance, law, landscaping, and temporary structure projects. You can wrap the heightened sub-limit into a premium charge for your business if you seek this type of coverage. Builders love increasing the sub-limit above the traditional $100,000 average, and the premium is usually worth paying for such a feature.
2. Soft Costs and Delays
Agents and brokers have a job to scrutinize any project that seeks builders risk insurance and ask every "what if?" possible. Many items are only examined after a loss, especially when soft costs and delayed expenses are considered. Investigate these issues by conducting meetings regularly and educating your workforce on builders risk hazards.
3. Policy Warrants
Many insurance companies are now requiring warrants to go along with builders risk insurance. For example, a company will say there are certain things you must have as part of the project to ensure your builders risk policy will kick into effect in the event of an emergency. Most of the time, these warranties are loss prevention techniques that a contractor or builder may not have had on the job site initially.
4. One-Stop Shopping
Back in the day, there were dozens of different types of coverage forms constructions companies and builders could utilize. These coverages included separate installation, general liability, riggers liability, and so many more. Different sectors within the construction market could get what they needed quickly and easily.
However, things have changed. With crossover between markets and trades increasing in the construction industry, there is a need for a one-size-fits-all policy for builders. To that end, insurance companies have come through. Complex construction operations now require a builder's policy that covers any and every construction operation and project.
Understanding Builders Risk Coverage
By diving deep into builders risk and noticing current trends, you'll stay ahead of the game and ahead of competitors Remember to read the fine print and understand that every builders risk policy is unique.
If you have questions about Builder's Risk policies contact Skyline Risk Management, Inc., (718) 267-6600 to voice your concerns.