What assets can contractors insure through builders risk coverage?
Builders risk coverage can usually extend to supplies, equipment and completed work that sustains damage. Any coverage for supplies or equipment is usually limited to only when the items are at the project’s location, and specific terms can vary between policies.
In most cases, contractors can get the following supplies and equipment covered:
- Large and heavy equipment
- Specialized equipment
- Common tools
- Specialized tools
- Supplies and materials
- Structures in progress
Any protection for structures that are in progress might apply only to specific structures, or it might extend to all structures on the project site. Contractors should review this and all other details of a policy closely with a specialized insurance agent. An agent who knows builders risk coverage well should be able to help contractors find coverage for the equipment, tools, supplies and structures that they need protected.