September is National Preparedness Month, a great time to plan ahead for disaster response and post-disaster recovery.

But we’d like to suggest that contractors might best spend their time this September reviewing their contractors insurance—and considering whether they have the coverage they really need in the amount that will best serve their business (not to mention their peace of mind!).

You know many of the points you need to consider—workforce size for workers comp insurance, equipment value for your equipment floater (or inland marine insurance). But here are a couple of coverages you may be less familiar with

Business Interruption Insurances

You might hear it referred to by other names: business income protection, profit protection, or out-of-business coverage, for instance. But whatever you call it, it’s an insurance coverage that can prove invaluable to construction professionals and other contractors.

After all, if your business has to close down temporarily due to a property loss resulting from fire, storm damage, vandalism, or theft, you will still have obligations you need to manage: taxes, loan payments, suppliers, rent or mortgage, insurance premiums (of course we couldn’t leave that out!). But with your income temporary slashed, how can you meet those obligations? How can you afford to move to a temporary new location?

That’s where business interruption insurance comes into play. This type of policy provides the money you’ll need to deal with those types of expenses.

Not all business interruption policies are created equal. Some many also provide funds for some time after your business re-opens, until it reaches its pre-incident income level. And not every business needs business interruption insurance, since some business property insurance policies may include wording that covers loss of income. Review your current insurance policies to determine whether you should consider business interruption insurance—or give us a call. We’ll be happy to review your policies with you.

Builders Risk Insurance

Sometimes called “course of construction” insurance, this type of coverage insures buildings that are under construction—in addition to the equipment and materials being used to build the project.

It’s an important coverage if you’re working with fragile materials—or in areas that are prone to severe weather. (This type of policy will probably exclude some acts of nature, such as flood or earthquake, however.) Some builders risk policies even cover theft of building materials. This policy may also cover damages resulting from negligent workmanship, flawed materials, or a flawed design. Coverage terminates when the building is completed or occupied.

This year, take advantage of National Preparedness Month. Thoroughly review your contractors insurance policies, and determine whether you have the coverage you need. Got questions? We’re here to help!

ContractorHelpers.com is offered by Insurance Partners, Inc., which has specialized in contractors insurance for more than 35 years. If you have questions about your contractors insurance coverage, contact us.