Running a business is no easy task, any business owner is bound to make mistakes. Irrespective of a businessman’s experience and scope or sector, mistakes and faults are bound to arise no matter how cautiously a business is conducted. No business owner wishes to cause deliberate harm to it’s consumers and customers, however sometimes, even without intention the owners can make mistakes that result in grave injuries to a consumer.
When this happens many times people choose to sue the owner and business in hopes of being awarded a monetary compensation.
Usually courts award compensations equal to the expense incurred by a family while attending to the injury caused, however in certain cases it can be more. While families hire a budget friendly attorney, firms and businesses have special lawyers or attorneys to deal with consumer filed lawsuits.
However these lawsuits and damage control can be pretty expensive to deal with and hence most firms opt for insurance and risk coverage.
What is risk coverage?
Builders risk coverage or builders risk insurance policy refers to the phenomenon of building owners getting their under construction buildings insured, in case any damage occurs to them. These insurance policies don’t cost a lot, however they can safe potential real estate projects and their owners and developers a lot of money. When a building is being constructed, it is immensely fragile, especially when only it’s framework has been laid.
During this stage even the slightest natural event such as heavy rainfall or strong winds can crash the entire project and ruin the raw material lying on a construction site causing heavy losses to the developer and owner. However these losses are often the best case scenario. In the worst case scenario, a falling building can even cause harm to by passers and workers. If such a case happens and the injured party chooses to sue the owner, they are most likely to win and be awarded a monetary compensation, which at the minimum is enough to cover the medical expenses incurred and sometimes these compensations are so huge they can be more than the cost of the entire project being established.
Builders risk insurance covers all legal expenses and sometimes even pays the compensation awarded partly or completely.
Insurance in any prospect is important and necessary, it helps avoid unnecessary costs and saves owners money, not only this an insured project’s value increases drastically on the market and to some extent even helps educated and informed buyers to understand the potential risks and threats of moving into any building. Builders risk insurance is one of the most popular once after life, health and automobile. Companies and builders, across the globe and especially in developed countries add the cost of insurance to the basic costs of the project and this mere fact explains how important they consider insuring their potential future projects as. The cost of insurance and premium, however depends on various factors and obviously the credibility and credit score of the builder or whoever opts for the policy and becomes the policyholder.