From the Front Lines: Builders Risk

How did you get started at your agency?

I have been in the commercial insurance industry for more than 25 years. I was fortunate to become part of the Buckner team in 2006 after working at another large agency for many years.

Why builders risk?

My specialty is construction, and I believe it is important to have the proper coverage in place for all projects. Coverage should include the financial interests of everyone involved in the construction project, including the owner, lender, general contractor, all subcontractors and suppliers, and any others.

Biggest builders risk challenges?

Finding insurance companies that are willing to provide the proper coverage for all parties at a fair price with affordable deductibles, and coverage for property that may be offsite or in transit. In addition, some projects may be built in high-hazard zones, such as earthquake or flood areas, and coverage may only be provided by nonstandard carriers or excess lines providers. In some cases, it may be necessary to secure policies from more than one provider to ensure all perils are adequately insured.

Biggest builders risk changes over the years?

Many times, a project owner does not understand what a builders risk policy provides. Owners often believe that coverage for their project is provided by the builder’s general liability policy, which is not the case. Builders risk insurance is a property policy that covers the project while under construction and only responds to the perils covered under the builders risk property form, while the GL policy provides coverage for bodily injury and property damage to third parties.

Builders risk advice for a fellow agent?

The best course for agents who are dealing with owners and contractors is to make sure you know what the builders risk policy does and does not provide. Making yourself familiar with and becoming educated about what the builders risk policy contains is key. It is also best to make sure the customer fully understands the policy as well.

Favorite builders risk success story?

Fortunately, I have been able to witness several cases of where a builders risk policy saved contractors from severe financial strain after an incident at the job site. By ensuring that all those with a financial interest in a construction project are properly covered, you save everyone time and money in the long run. And by providing the proper builders risk policy, all will be assured that their project is completed on time and within budget.