First and foremost a builder’s risk insurance policy protects the home builder or contractor, not the home owner. This insurance is temporary – usually for the term of the construction effort or until the home owner accepts the home and occupies it. This insurance coverage protects the contractor from theft, weather and other “natural acts,” vandalism, etc. Different carriers and policies cover different hazards, so make sure it covers everything needed – including a reasonable profit! Premiums are set by the value of the property(s), so don’t overestimate.
Types of builder risk insurance policies:
- Single Shot – a policy for one home. Has the least expensive premium.
- Monthly or Annual Rate/Monthly Report – a policy that covers all the builder’s inventory, is paid for monthly or annually, and requires a monthly report to the carrier
- Blanket Annual Deposit – premium based on estimated value of inventory and anticipated starts in next 12 months.
So, you’ve “bit the bullet”, so to speak, and you’ve decided to invest in your next big investment: your house. Did you know that Builder’s Risk insurance can help with that? If you are a homeowner, monthly builders risk insurance may work best for you. With monthly builders risk insurance, you will be required to keep track of the materials and tools you use monthly, and report on them. This is the only downside to purchasing builder’s risk insurance monthly. However, by keeping track of all the details, you will find that all of the materials you are putting forward towards your house are protected and your house, your newest, biggest investment, is as well.
When it comes to builders risk insurance and selecting a policy there is a lot of information you should know. First keep in mind that there are many different types of builders risk insurance for you to choose from. One of the easiest is called the blanket annual deposit.
With this policy you are basing your insurance on the estimated amount of new business for the year. You can also include the homes that will be in inventory more than twelve months. The insurance company will provide you a rate based on this information.
The cool part about this is that most construction insurance companies will allow you to pay them monthly for this type of policy. This has a direct benefit to a small company because it is not all due in a lump sum payment. Spreading the bill out allows you to collect money and pay your insurance payment every month. There is an audit with this type of service which means if you build more houses you will have to pay the insurance company more. However, for many builders this is still an awesome plan.
Vandals often target home construction sites and often target them for material theft or for malicious destruction. When this happens, replacement and repair costs fall on the builder. Similarly, storms and fire can damage or destroy homes under construction. Because of these risks, every builder and contractor should carry builders risk insurance. This temporary property insurance protects builders during construction.
Builders should have risk insurance in place for a project in time for the first delivery of supplies to the construction site. With a policy in place, contractors have protection if they disappear. Risk insurance policies vary among insurers, so builders must make sure their coverage includes loss of unused material and the collapse of partially-completed buildings.
Some contractors make the mistake of relying on homeowners to buy builders risk insurance only to find out that they either bought inadequate coverage or forgot to buy it altogether. When this happens, builders wish they bought the insurance themselves because they suffer significant loss.
You may not have knowledge about the kind of builders risk insurance to apply for to cover your property that is under construction by your builder. It is important to inquire from your contractor insurance agent who will guide you on the appropriate cover to take for this project. In addition to that, you will have to estimate the charges of that policy and see if it will suit you.
Also let your builder risk insurance broker understand the kind of home you want to construct so that he can advise you more to gather enough information. Make sure you ask your builder if they have builders risk insurance coverage if not make sure they get a risk insurance quote from a qualified insurance agent.
Lets face it, today just about anything we do in the professional field carries risk. Professional positions such as computer programmers, web developers and designers all carry risks. The smallest accident that causes an error can become a massive liability. It’s not enough to have a general liability policy though, what you need to understand is that there are many risks that must be covered in a different type of policy.
For IT techs and other technology professionals it is recommended that you get what is called E&O Professional Liability Indemnity Insurance to be protected from negligence or a claim from a client or even your employer. People are now hiring people who are experienced in information technology to babysit and update their Facebook/MySpace pages. People can often get extremely upset if something goes wrong with one of these pages for them. It does not even matter at times whether the IT professional.
People can get so offended if something happens to their MySpace or Facebook page that they can threaten litigation. This litigation is why many IT professionals need to carry business liability technology insurance. MySpace is a multi-million dollar company and some people take it very seriously on the basis of simple networking alone. The destruction or even partial loss of time on their MySpace page can cost people money.
An information technology professional who has been hired to setup an e-mail server for an energy consulting should carry some sort of professional liability technology insurance coverage. There can be a lot of things which could go wrong with e-mail servers when they are first activated or put into place. The IT professionals to stay on top of this situation or otherwise you will get blamed for the issues whether it is likely your fault for the mishaps or not.
The energy consulting firm may even get so upset about the errors and omissions that they bring litigation against the IT professional. In a state such as North Carolina where there hasn’t been strong tort reform for example, these lawsuits can be extremely costly. This is why an IT professional would be so smart to carry business liability insurance in North Carolina or any state for that matter.
Some states such as Mississippi have enacted strong tort reform measures, but these would just limit punitive damage awards and not actually prevent you from getting sued. So even in states where tort reform has been enacted an information technology professional should still carry technology liability insurance. It is a hope of mine that they will be able to find this insurance at an affordable rate.
Part of being an experienced information technology professional is having to deal with expensive pieces of equipment. However, by handling such items, you put yourself at risk. If anything goes wrong when you are working on the item, you could be held liable. This is more than a slap on the hand. You could instead be sued and have to pay out hundreds if not thousands of dollars. This is why professional liability errors and omissions indemnity coverage is an essential investment for any IT professional or tech business. Such a plan will protect you in the event that a customer’s computer or another piece of technology is damaged. Additionally, it will protect you if a client falls and injures him or herself when on your property. You want to cover all of your bases so that you can protect your reputation and your investments. General liability business technology insurance coverage is an important safety net for your own security and peace of mind.
Many computer programmers deal with a bit of risk and liability based on the fact that they can make an error or ommissions and cause issues for their client. All information technology professionals who work on a freelance basis or within an employee capacity nowadays should carry E&O coverage. One requirement many clients prefer is that the individual who is going to be working on their system carry some form of professional liability technology business insurance for IT tech professionals. Why is this important? Simple: If you carry general liability insurance you are covered in case you damage your client’s or employer’s equipment in some manner while working on it.
Further, general liability insurance can cover the IT professional should he or she make any programming mistakes. This form of general liability coverage is referred to as errors and omission insurance and is needed in order to assure the company’s financial loss as a result of the mistake will not place the IT professional at risk. In other words, the insurance company provides the IT professional protection with respect to any mistakes made on his or her part that end up costing the client or employer company considerable time and money.
Regardless, since most clients require general liability insurance, the two facts within the preceding content make it worth the investiment to the IT professional.