The Construction Process and Obtaining the Right Coverage

Business insurance for owners protects your organization by minimizing financial risks associated with unexpected events. This can include the death of a partner, an injury occurring to an employee, a lawsuit you might encounter, or even a natural disaster. It’s a general term used for different coverages that are available to the business owner to protect against financial losses.


To ensure the continued success and operation of your business, having proper building owners insurance coverage, at an affordable rate, can help protect your business when a claim occurs, plus it will provide you with the ability to recover quickly and get your operations back up and running. Finding the right commercial insurance expert will help guide you through the process and lead to your success.


Insuring at the start of construction


Even before the first tenant signs a lease you’re going to need coverage. Whether it’s a skyscraper or an empty lot, non-owner occupied property offers up a number of risks to contend with. You’ll want to protect your assets from the perils you may face. A builder’s risk insurance policy basically covers the materials and parties involved in the building project, which can include you, architects, lenders, subcontractors, and any physical materials.


The perils these contracts generally protect against are fire, windstorm, vandalism, malicious mischief, theft of building items, etc. A “Broad Form” endorsement on one of these policy contracts will also insure you for the above incidents while your property is in transit or off-site. Most major insurance companies will offer these types of policies so make sure that you shop around.


You’ll want the policy limit to reflect the total completed value of the structure, including all materials. In the event of a covered loss, the policy will pay up to the policy limits for damages. Your construction budget is the best source for determining the most appropriate limit of building owners insurance. The broker or agent quoting the coverage for you will be able to explain the specifics and the importance of choosing the right limit.