The Importance of A Builders Risk Policy

Many lessors for for cannabis operations are requiring tenants to have general liability and property coverage to satisfy a lease before releasing the keys to their building and/or greenhouse. Many times these greenhouses need restoration before the tenant begins their cannabis operations. What many owners who are obtaining the insurance don't understand, is that the general liability and property coverage will satisfy the lease, but may not cover the building/greenhouse properly during construction. The coverage you should have in place while the building is under construction, is a builders risk or course of construction policy.

Active construction and renovation will bring added exposure that standard insurance policies may not allow for and may not cover if there is a loss. Builders risk insurance will cover your from fire, vandalism, theft, and other unwanted and unforeseen events during the construction project. What's nice about this coverage is you typically have the flexibility to choose different terms including 3, 6, 9, and 12 months. When reviewing your builders risk policy you need to make sure that the coverage terms and perils insured are appropriate for the exposures you have, and that the limits will satisfy the insurable interest, whether that's the limit your agent help you come up with or you have certain limits you need to obtain. 

If you have a lease that you need to satisfy before beginning your operations or if you have any questions regarding builders risk in general, feel free to contact us