Commercial builder's risk insurance is required for enterprises building new structures for commercial or business use. This type of policy protects the construction site from certain types of weather damage, as well as damage stemming from vandalism. Commercial policies for builder's risk insurance also covers loss or damage of working materials while they are transported to the work site or held at a temporary location.
Instructions
1. Know the expected sale price of the finished project as well as the value of the building materials. Some insurance companies offering commercial builder's risk limit the value to a certain amount, sometimes even in the millions of dollars.
2. Get an application from the company you have picked. Read it over carefully before filling it out. Ask questions if you do not understand what information you need to supply.
3. List the work experience and history of all the workers who will be building the commercial structures. Some policies require at least 2 years of building experience in order to be name as an insured person on the policy. For very high value projects, several more years of work experience is expected or required.
4. Complete the application packet for the specific job that will be covered under the policy, remembering to include accurate start and end dates. Some policies allow for the building to be up to 30 percent finished before being approved for a policy.
5. Ask your insurance agent if you must submit a new application for jobs that have workers in more than one location. If so, ask if you can get a reduced rate for subsequent policies.
6. Purchase personal liability insurance as well as builder's risk insurance to protect yourself or your company if anyone is hurt at the work site. This does not apply to employees being injured, but visitors or other spectators. Employees are covered through worker's compensation insurance.
7. Choose add-on coverage for an additional fee to include terrorism, earthquake or flood protection if you perceive a need for it. If your equipment's value exceeds a certain dollar amount, you may need to buy more coverage for that as well.
