Builders risk insurance is an important part of operating a business. It is a requirement in order to operate any business that involves building, repair, and remodeling of any structure. Without the coverage it can cost you thousands of dollars if a customer develops a problem after moving in and is injured. The policy protects you if your work site creates a dangerous condition for your customers.
Builders risk insurance Texas is not always what you may think. Many companies will try to sell you their liability and underwriting package which don't cover things like contractors causing an earthquake or fire, and damage that happens when a tank ruptures or a pipe bursts. If that happens your liability protection will not protect you are stuck with a bunch of red tape and thousands of dollars in costs.
When it comes to protecting your investments with builders insurance Texas, there are several things that you need to know. First you need to decide whether you are going with a general liability policy or a specialty policy. You also need to know what type of contractor that you are working with and if they have any special stipulations. These things will help you make the right choices and protect your interests.
General liability is the most common type of coverage that people have to buy for their construction projects. It will cover your property as well as your workers. Make sure that you get a coverage package that will give you coverage for both bodily injury and property damage.
Specialty policies are usually used when a contractor is known to have had a lot of injuries. This could be from a bad job or repetitively putting in the same amount of hours. If you choose this type of policy, it will protect you in any way that you feel is necessary. It will also cover contractors that have been found to injure employees in an unsafe work environment. Many times a specialized policy will cover your legal costs if someone gets injured on your property. The only drawback is that you will not be covered for legal costs that occur after the work has begun.
Builders' liens are another way to protect your investments in Texas. This type of insurance will protect you in the event that the contractor fails and you lose all of your materials. You will need to get liability and workman's compensation insurance along with this policy. This way you will be able to pay for the materials that you lose and the repair that you fail to complete.
Professional indemnity insurance is also something that you will want to consider when it comes to protecting your investments with builder's risk insurance in Texas. This insurance will protect you in the event that the builder creates substandard work or does not meet quality standards for workmanship. This insurance can help to cover the legal expenses that you may incur if you are sued as a result of a poor job by the contractor. If you are working with a company that has many workers, this type of insurance is even more important. Many times there is just one worker that does most of the construction and if that person gets hurt the entire building could be held accountable.
Builders risk insurance in Texas is a good way to protect your investments. There are many ways that this particular type of insurance can protect you from risks and losses that you may encounter as a result of building construction in the Dallas area. There are many contractors that you can work with in the Dallas area that have built thousands of homes and businesses over the years. Some of them are well-known and some you may never heard of. When you are choosing contractors, make sure that they have the proper insurance coverage in place. Protecting your investment is important and it is one of the easiest ways that you can protect your family.