BUILDERS RISK INSURENCE REQUIREMENTS

When protecting a construction site, adhering to builders' risk insurance requirements is essential to mitigate potential risks and losses. These requirements outline the necessary measures to deter theft, vandalism, and other incidents that could disrupt a project’s progress. 

Construction cameras play a crucial role in meeting these standards, keeping your site continuously monitored and protected. Without proper compliance, not only is your site vulnerable, but your insurance coverage could also be at risk. 

There are a lot of unknowns during construction, which is why builder’s risk insurance, or course of construction insurance, is a lifesaver. One of the primary functions of a good builder’s risk policy is to reduce the contractor’s out-of-pocket cost when unexpected incidents affect a building during construction or renovation. 

Builder’s risk insurance is less standardized than other types of construction insurance, which means that policies can vary significantly in coverage and cost. Fortunately, many insurance agencies offer discounts to contractors who prioritize site security. 

Getting a good deal on builder’s risk insurance comes down to choosing the right policy and discounts. Follow the three steps below to get started.

Not all builders’ risk policies are created equal. Builder’s risk insurance covers the building during construction or renovation, but not all policies cover things like weather damage. While some policies cover materials and supplies stored off-site, others may not. So, finding the right policy could take time. 

In addition to finding out what the policy covers, contractors should ask about available discounts and requirements for coverage during the initial evaluation process to ensure they’re getting the best deal. 

When comparing builder’s risk policies, look for one that covers these common risks:

• Theft
• Vandalism
• Explosion
• Materials and supplies (on or off-site)
• Fire and water damage

When deciding what coverage you need, consider the project’s size, individual risks, and any external requirements from the state or project owner.

Many insurance companies offer discounts to contractors who use certain protective safeguards, like burglar alarms, security cameras, and security monitoring services. These discounts are often called endorsements by insurance companies, and they’re one of the best ways contractors can save on builder’s risk policies. 

A common way contractors can receive endorsement discounts is by agreeing to use an approved security monitoring service, like Choice Virtual Guard Service. With this type of endorsement, using a professional security monitoring service is a requirement for coverage.

Since coverage hinges on the contractor meeting their requirements at all times, a good builder’s risk policy should state all protective safeguard requirements clearly from the beginning. Insurance agencies should also implement protective safeguards to ensure they meet the policy requirements. 

Choice Virtual Guard Service satisfies builder’s risk insurance discount requirements while providing live security monitoring. When using this service, a dedicated monitoring professional will review all motion-triggered events on the site, visually verify any possible threats in real time, and respond immediately.

Once a discount gets applied to a policy, the contractor must maintain the agreed-upon requirements to guarantee coverage. Insurance agencies take these requirements seriously.

 They conduct thorough investigations into a claim case to ensure all parties have adhered to the policy.

Suppose a theft occurs while a contractor is receiving an endorsement for a security monitoring service. In that case, the insurance agency will verify that the service was active and met all requirements during the theft. If the insurance agency cannot verify this, they may deny coverage. That’s why a reliable, live monitoring service is an essential security upgrade for this type of endorsement. 

Choice Virtual Guard Service meets the requirements of most builder’s risk insurance policies. It also protects against theft and vandalism, saving money on more than just insurance premiums.

• The system has the ability to communicate directly with intruders through live audio.
• It allows security personnel or the monitoring team to issue verbal warnings.
• This feature helps de-escalate situations before they become serious threats.

• The system uses strobe lights to visually signal that the site is under surveillance.
• Loud sirens alert potential intruders that they have been detected.
• Systems should include customizable alerts based on different zones within the site.

• Battery backup should last at least four hours in the event of power loss.
• The system should automatically switch to backup power without downtime.
• Alerts should be sent if the battery is engaged or if the power loss extends beyond 30 minutes.

• Cameras must be equipped with IR illumination or thermal imaging to maintain clear visibility at night or in dark conditions.
• Low-light functionality should be capable of covering the entire site perimeter.
• Continuous monitoring for site breaches, even in poor visibility conditions.

• The system must identify and differentiate between vehicles and humans to reduce false alarms.
• Real-time alerts are sent to the monitoring station for immediate verification and response.

• Surveillance and monitoring must automatically activate when work ends and continue throughout the night.
• The system should follow a predetermined schedule to ensure protection during downtime.
• Fail-safes must be in place to prevent manual errors or gaps in monitoring.

• Systems must be programmable to activate according to specific site hours or activities.
• The schedule should account for holidays, weekends, and any non-standard workdays.
• Automatic activation helps eliminate reliance on manual processes and enhances security.

• Continuous monitoring for power loss, cellular or wireless connection failures, and any tampering with devices.
• Immediate alerts for camera malfunction or focus issues to ensure constant coverage.
• The monitoring center must oversee and address these issues promptly to minimize site vulnerabilities.

Meeting builders risk insurance requirements is crucial for protecting your construction site from theft, vandalism, and costly delays. A comprehensive security setup guarantees compliance with insurance standards and helps protect your project around the clock with active real-time monitoring, motion detection, and audiovisual deterrents.

To simplify your security needs, check out our new all-in-one security solution,  designed specifically to address builders' risk insurance requirements. With talkdown capabilities, real-time alerts, battery backup, and much more, Choice Virtual Guard Service builders provide complete protection for your site.

Contact us today to learn how Choice Virtual Guard Service Security Monitoring can help you save.