How Builder’s Risk Insurance Protects Your Project from Delays
Unforeseen project delays do more than catch you by surprise—they can cost you money, hurt your reputation, lead to contract penalties, and even jeopardize the entire project. The good news is builder’s risk insurance coverages can protect you from unexpected events like severe weather, supply chain disruptions, theft, or other events that put you on pause.
It's essential to any builder's success, and here's why.
Common Causes of Construction Delays
Unfortunately, construction projects rarely proceed exactly as planned. Several factors can contribute to project delays, including:
- Weather events: Whether it’s a severe storm, flooding, freezing temperatures, or all of the above, Mother Nature often decides when you work and whether materials arrive on time.
- Supply chain disruptions: It's not just weather that can disrupt deliveries. So can manufacturing delays, strikes, material shortages—the list goes on.
- Permit and Inspection Delays: Municipal red tape, slow permit approvals, and failed inspections can all create costly delays.
- Stolen materials and equipment: Construction sites are prime targets for thieves to walk away with unsecured materials and equipment.
This is, of course, only a shortlist, but the dangers are clear. Without builder’s risk insurance coverage, you could face hefty contract penalties and financial losses that could affect future projects.
How Builder’s Risk Insurance Companies Protect You
When you encounter unexpected project delays, builder’s risk insurance coverages may kick in to:
Cover Physical Damage
Builder's risk insurance coverages extend to materials and fixtures damaged on the construction site. Whether the loss was caused by a weather-related event or fire, builder's insurance helps you pay for repairs or replacements that would otherwise drain your budget and extend timelines.
Replace Stolen Property
Unfortunately, construction sites are a prime target for thieves, especially in an era characterized by inflated material costs. Whether you've lost tools, appliances, lumber, or any other project-related property, construction and builder’s risk insurance helps you recover quickly—without significant financial setbacks.
Protect From Weather-Related Events
From unexpected storms to freezing temperatures, weather events can damage materials and cause significant delays. Builder’s risk insurance not only covers materials and equipment, but also the costs of cleanup and reconstruction.
Avoid Contract Penalties
Delays don't just hurt your reputation. They can also lead to contractual penalties triggered by missed deadlines. Many construction contracts include liquidated damages clauses that impose daily fees for delays. And these fines can be hefty. Builder's risk insurance coverage keeps you moving forward while protecting your bottom line and client relationships.
Minimize Financial Burdens
While builder’s risk insurance cost varies, the investment is minimal compared to potential losses from uninsured delays.
Instead of tapping your reserves or contingency funds when unexpected delays occur, builder’s risk insurance coverage minimizes your out-of-pocket expenses. That predictability is priceless.
We Ensure You Build With Confidence
We can't predict the future, but we can certainly help you plan for it. Whether you are a contractor, architect, or a stakeholder in a commercial or residential project, you need protection and peace of mind. That's what Hoffman Hanono offers. For over 60 years, we've helped San Diego builders avoid costly delays and financial setbacks through customized builder's risk coverage. Contact us today!