Home Improvement Contractors Need Builders Risk Insurance

The importance of builder’s risk insurance for new construction is fairly well known in the profession. It is why many individual contractors and small business operations choose to limit their offerings to renovation and small feature additions for the yard and garden. In those cases, though, coverage is still a good idea. Builders risk for renovations can involve as much exposure for home improvement contractors as the risk of new construction does for larger firms when you consider the potential losses proportionally to the overall financial resources of the business.

What Do Policies for Renovation Contractors Cover?

Coverage for home improvement construction protects you from the same kinds of risks as coverage for new homes under construction, but with policy limits that reflect the scope of the job.

  • Vandalism, theft & related crime protection
  • Fire, wind & non-flood weather coverage
  • Negligence

Most of the time, your business insurance covers your exposure to the cost of damages when employees, customers, or other parties are affected and you bear liability. Risk insurance does pay out for some client losses, but it is primarily focused on your business and its losses when something happens. Buying coverage to protect builders risk for renovations means having resources when something happens to your equipment, supplies, or job site.

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