Builders' Risk Insurance

Builder’s Risk insurance coverage is a type of property insurance specifically designed to cover property during the course of construction, including renovation and repair.

Why do you need it?

There are additional risks and responsibilities inherent with this type of work that a typical property policy is not designed to cover. For example, if someone steals contractors’ equipment from the job site or if construction materials are damaged, you could be liable for the loss if you do not have builder’s risk coverage. Typically the coverage is purchased by either the property owner or contractor. Regardless of who purchases the coverage, all parties that have property involved in the project should be named in the policy. This may include the owner, contractor, subcontractors, the financial institution funding the project, and, in some cases, the architects and engineers. Once the project is complete and/or accepted by the owner, your regular property policy kicks in. Since builder’s risk coverage only deals on the property side, it does not include coverage for worksite injuries or design/construction defects. For any mishaps that occur on the job, rely on liability and workers’ compensation insurance policies for coverage.