Builders are inherently subjected to many risks in their scope of work. As the wet season approaches and rain, flooding, and snow become inevitable, it is critical to examine your NJ Builders Risk Insurance to ensure proper coverage. While most think a standard policy will cover them, where the water comes from and the ensuing damage makes a big difference in regards to coverage. In order to determine if your policy indicates coverage gaps, consider the following.
“Whenever water finds its way onto a project and ends up where it doesn’t belong, major setbacks and costly damage can follow. Too often, policyholders don’t recognize the differences in policy wording that determine what and how much coverage is provided when these types of events happen,” stated Senior Vice President of ACE Inland Marine Mark Gadaire. “It’s important to have a clear understanding of this when obtaining coverage, not after a loss.”
He also stresses the importance of proactively preventing water damage as part of a regular safety procedure while on the job. In turn, financial loss and obligation can be greatly reduced. Gadaire’s recent paper, “Builders’ Risk: Water Damage or Flood?” examines the different in coverage upon distinguishing the source of the flooding at the jobsite.
According to Market Watch, here are some of the key highlights from the paper.
-Importance of recognizing the many potential sources of water damage.
-The need to understand your insurance coverage and what specifically is protected under that policy.
-How to proactively identify risks and mitigate future losses.
-What a comprehensive plan looks like, including a step by step process in the event of a flood and a response plan.
At Tri-State Insurance Agency, we offer comprehensive builders’ risk products to suit your business’ specific needs. We understand the risk implications of working in this industry during the harsh fall and winter months, and seek to underwrite policies to provide you with peace of mind. For more information, contact us today at (888) 990-0526.