At Program Insurance Group, we specialize in finding the right coverage for Home Builders, Sub-contractors and Remodelers. We recognize the unique coverages that are necessary to properly insure you and your business. We are part of the Builders Agent Network, Builders Insurance Group and members of the Austin, Waco and Brazos Valley Home Builders Associations.
There are two main types of insurance a Homebuilder, Sub-contractor and a Remodeler should consider having in place to cover their business, Builder's Risk and General Liability.
Builder’s Risk
Builder’s Risk coverage is an inland marine coverage form that covers the physical work product from several external risks for the construction/remodeling business.
“A property insurance policy that is designed to cover property during construction. There is no single standard builders risk form; most builders risk policies are written on inland marine (rather than commercial property) forms. Coverage is usually written on an all risks basis and typically applies not only to property at the construction site, but also to property at off-site storage locations and in transit. Builder's Risk insurance can be written on either a completed value or a reporting form basis; in either case, the estimated completed value of the project is used as the limit of insurance.” (IRMI)
Builder’s Risk typically covers the following perils to your construction:
There are Builder’s Risk forms that will cover wind; however, there are certain areas where wind will be excluded. There are also Builder’s Risk forms that can be endorsed to cover earthquake damage (typically subject to a separate deductible, if available) and the builder’ risk form can also be endorsed to cover flood damage (typically subject to a separate deductible, if available).
General Liability
Equally important to a builder or contractor is General Liability insurance. Typical General Liability offers protection for the owner against claims of liability for bodily injury, property damage, and personal and advertising injury (libel and false advertising). Premises/Operations coverage pays for bodily injury or property damage that occurs on your premises or as a result of your business operations. Products/Completed Operations coverage pays for bodily injury and property damage that occurs away from your business premises and is caused by your products or completed work.
Claim Scenario
|
General Liability
|
Builder’s Risk
|
| Theft of building materials |
No |
Yes |
| Total loss of the structure due to fire, wind, vandalism |
No |
Yes |
| A neighbor’s child sneaks on to the property and is injured |
Yes |
No |
| Subcontractor falls through an open skylight |
Yes |
No |
| Silt fence fails to control debris from the jobsite and a runner trips on the debris and breaks their hand. Sustains bodily injury |
Yes |
No |
| Scaffolding is destroyed by a strong wind |
No |
Yes |
| Scaffolding is destroyed by a strong wind and the scaffolding pieces do $30,000 in damage to the neighboring property owner’s home |
Yes; however, the general liability policy will most likely not respond to the damage to your scaffolding |
Yes; however, the Builder’s Risk policy will most likely not respond to the damage to the neighbor’s home |
| Completed operations |
Yes |
No |
Coverage you can count on by Great American
From a single, custom home to an entire subdivision, Great American’s Property & Inland Marine Division covers all your residential contractor needs, including:
- Your property and property that you are responsible for, including materials that are supplied by the owner or that will be permanently installed in the dwelling.
- Building materials, scaffolding and construction forms while stored on the job site.
- A specific limit for materials stored temporarily at an off-site location. Higher limits may be purchased.
- Property in transit, removal expenses, fire department service charges and outdoor trees, shrubs and plants.
- Profit, with an option to exclude if desired.
Interested in learning more or getting the ball rolling? Our agents will be very happy to speak with you, no matter where you are located. Give us a call at 844-744-7526 today, or contact us to get our partnership started. Let’s not let another day pass without your business having the coverage it needs!
Great American Insurance Group, 301 E. Fourth St., Cincinnati, OH 45202. Coverage description is summarized. Refer to the actual policy for a full description of applicable terms, conditions, limits and exclusions. Policies are underwritten by Great American Insurance Company, Great American Assurance Company, Great American Alliance Insurance Company and Great American Insurance Company of New York, authorized insurers in all 50 states and the DC.