Why Contractors Need a Charlotte Builder’s Risk Insurance Policy

Written By Charlotte Insurance on June 30, 2015. It has 0 comments.

You spent countless hours preparing a bid, answering the client’s questions, and understanding their specifications. Beating out dozens of other major construction companies, you were awarded the job. It’s the biggest you’ve ever won. Now you’re hiring new people, finding new subcontractors, and looking forward to adding this project to your list of satisfied clients.

Then disaster strikes. A fire takes out most of the job site. The job is on hold indefinitely as the cause of the fire is investigated. Your clients have determined they don’t have the money to start over.

Very little can prevent fire and theft, but the job could have continued if you or your client had builder’s risk insurance.

In a perfect world, your clients would purchase the insurance themselves in order to make sure their own investment is well protected. When they won’t or can’t, you can purchase your own coverage. Consider it a value add for them, and extra peace of mind for everyone.


Your liability insurance will protect you from lawsuits when accidents happen or an employee screws up. A builder’s risk policy kicks in when an unfinished building project is damaged or destroyed for a variety of reasons: fire, theft, some natural disasters, lightning, explosions, and other causes. This kind of policy can cover the building materials and/or the structure.

Instead of a job being put on hold indefinitely, this kind of insurance will cover the cost of replacing what was lost, and get you back to work quicker. Consider a Charlotte builder’s risk insurance policy for added protection for you and your business, above and beyond your typical coverage.


The specifics of your coverage will depend on the policy you choose. Work with your insurance agent and share the details of specific jobs to give them an idea of the best coverage for you. Here are a few things to ask about:

  • Coverage for scaffolding, office trailers, fencing, signs, cribbing, and more.
  • Soft costs like legal fees, taxes, and architect fees that can and will continue to accrue after the job site goes down.
  • Equipment breakdown coverage – including testing and inspections that may be needed to get your equipment back to work.
  • Risk management practices to avoid disasters and problems.
  • Theft of building materials and equipment, whether it’s on site, in transit, or in storage.

If you’ve been in business for a while, you know that whatever can go wrong, will. It only makes sense to make sure you have the right insurance coverage to pick up the pieces and keep working.

Think about your worst nightmare during new construction. Now imagine that there’s no way to recover, no way to get help, and no way to keep working. A Charlotte builder’s risk policy can’t fix every problem, but it goes a long way to keeping your job running even when the worst happens. Contact us today so we can answer your questions and work up a free quote for your business.

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