Why You Shouldn’t Hire a Contractor Without Builders Risk Insurance 

When planning a construction project, whether it’s a new build, a major renovation or even a commercial job, it might be tempting to cut costs by overlooking insurance details. But working with a contractor who doesn’t carry builders risk insurance can expose you to significant financial and legal risk. If you’re a homeowner or developer in Oakbrook, IL, this type of policy deserves your full attention.

What Builders Risk Insurance Actually Covers

Builders risk insurance helps protect property during the construction process. This specialized policy may cover damage caused by fire, theft, vandalism, certain weather events and more, depending on the terms. Unlike general liability insurance, which protects against third-party injuries or property damage, builders risk focuses on the structure itself, along with materials and equipment on-site.

Without it, you may be liable for losses that occur during the build, even if the contractor is technically at fault.

The Risks of Skipping this Coverage

Hiring a contractor without builders risk insurance can lead to the following:

• Financial liability—If a fire, storm or theft damages the structure or materials, someone has to pay. Without proper coverage, that burden could fall on you.

• Project delays—Recovering from a loss without insurance can take weeks or months, stalling construction and driving up costs.

• Legal and contract issues—Many lending institutions and local permitting offices in Illinois require builders risk coverage. Without it, your project might not move forward.

Protect Your Investment in Oakbrook, IL

Weather can be unpredictable, and Oakbrook, IL rapid suburban development often involves complex projects. That makes builders risk insurance more than just a nice-to-have; it’s a wise safeguard. Before hiring a contractor, ask about their coverage and request proof. If the contractor doesn’t carry builders risk, you may want to secure a policy yourself. Contact us today to learn more.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.