Protect Your Business With Builder's Risk Insurance
Saint-Félicien is a small city in the Canadian province of Quebec with a population of just over 10,000 people. Not only is it a popular tourist destination for hikers, cyclists and nature lovers but it is an attractive location for business owners who want to capitalize on this tourist trade. However, new construction comes with risks, making coverage for builder's risk in Saint-Félicien critical.
The forest biomass cogeneration plant in Saint-Félicien drives much of the industrial and infrastructure construction in the area. The federal government has invested millions into construction projects as part of the Green Infrastructure Stream of the Investing in Canada Infrastructure Program.
The availability of high-quality building materials, thanks to the local timber industry, makes Saint-Félicien an ideal location for new construction. However, as a seasoned professional, you know that construction is a high-risk business. You need to protect yourself with coverage for builder's risk in Saint-Félicien.
Coverage for Builder's Risk in Saint-Félicien
All construction sites face risks such as damage from weather, construction accidents, vandalism and theft. Builder's risk insurance protects your building while it is being constructed. A builder's risk policy covers the cost to repair buildings or structures under construction that suffer damage due to water damage, fire, wear and tear, or explosions, or any damage that results from faulty planning, design, materials or workmanship.
Because construction projects often have unique risks, many builder's risk policies require customization to cover unique exposures. Additionally, policies may specifically exclude some types of damage or causes of loss.
What Is Not Covered by Builder's Risk Insurance?
A builder's risk policy does not provide coverage once your project is complete. It also does not cover losses caused by a peril that is not named or is specifically excluded in the policy. Most builder's risk policies do not provide coverage for liability to third parties, though in some cases you may be able to add this coverage to the policy.
Who Needs Builder's Risk Insurance?
Any property owner, contractor or construction business with a financial stake in a construction project needs builder's risk coverage. Parties who may need to purchase one of these policies include:
- Business owners
- Construction companies
- General contractors
- Renovation contractors
- Real estate developers
Some municipalities require construction companies to show proof of a builder's risk policy before they will issue a permit.
Who Pays for Builder's Risk Insurance?
Property owners usually purchase builder's risk coverage. Construction contracts typically specify who is responsible for paying for the coverage.
How Is Builder's Risk Insurance Different From Commercial Property Insurance?
Builder's risk insurance is a type of property insurance that covers your property while it is under construction. In addition to covering the structure or structures being built, it provides coverage for materials, tools, machinery and equipment stored on-site. Commercial property insurance usually does not cover buildings that are under construction.
Does Contractor's Insurance Cover Builder's Risk?
Most contractor's insurance policies do not cover buildings that are under construction. Even if you already have contractor's insurance, you probably need a separate builder's risk policy.
What Other Types of Insurance Do Contractors Need?
Surety bond insurance provides a financial guarantee that you will fulfill your contractual obligations. Purchasing surety bonds offer your clients peace of mind that if you do not meet your contractual obligations, the client can file a claim on the bond.
Obtaining surety bonds can help you be more competitive when bidding on contracts. Certain types of jobs, such as many government contracts, may only accept bids from contractors who purchase surety bonds. In some cases, you may need surety bonds to fulfill licensing and permit requirements. Learn more about HUB’s construction insurance offerings!