Builder's Risk Insurance

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Builder's Risk Insurance

Protect your construction project from unexpected losses.

Construction projects involve significant time, money, and materials—and unexpected events can quickly derail progress. Builder’s Risk Insurance (also called Course of Construction coverage) is designed to help protect buildings and structures while they are under construction, renovation, or remodeling.

This coverage helps reduce the financial impact of covered losses so your project can stay on track.

What Is Builder’s Risk Insurance?

Builder’s Risk Insurance is a specialized type of property coverage that helps protect a project while it is being built. It can provide coverage for:

Buildings under construction
Materials on-site
Materials in transit or temporarily stored (if covered by the policy)
Fixtures and equipment being installed

Coverage applies to direct physical loss or damage caused by covered causes of loss, subject to policy terms, conditions, and exclusions.

Flood and earthquake are typically excluded unless added by endorsement.

What Does Builder’s Risk Insurance Typically Cover?

Depending on the policy, coverage may include protection against:

Fire
Wind and hail
Theft and vandalism
Explosion
Certain types of water damage
Lightning
Damage to covered materials and structures

Policies can often be customized based on the type and size of the project.

Who Needs Builder’s Risk Insurance?

Builder’s Risk coverage is important for anyone with a financial interest in a construction project, including:

Property owners
General contractors
Subcontractors
Developers
Lenders
Investors

Having proper coverage can help reduce financial disputes after a covered loss and help ensure there are sufficient funds to repair damage and complete the project.

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Property damage

Debris removal

Law/Local ordinance changes

Labour expenses

Material Cost escalation

Property damage coverage

Risk Factors

Your construction property can get damaged by any unspecific event like fire, explosion, hail, etc and you become liable for the same

Solution

A builder’s risk insurance policy helps protect your construction projects from certain kinds of property damage. It can also help cover additional soft costs if property damage causes a delay. This can include lost sales, rental income, additional interest on loans and real estate taxes.

Debris removal coverage

Risk Factors

The debris can be a major issue if you are into the construction of buildings and other structures.

Solution

Debris removal coverage covers the cost of clearing and disposing of the debris and materials from a covered loss, which can often be a massive expense. Some insurers will also cover demolition costs if the remaining parts of a damaged structure must be torn down.

Law/Local ordinance changes coverage

Risk Factors

There can be a possibility that the rules, regulations, and other laws change during your construction project and make an impact on the same.

Solution

Suppose a law or local ordinance changes during the construction project. In that case, this policy protection will cover the added costs of complying with the new laws, plus the costs of any delays that the new compliance adds to the project.

Labour expenses coverage

Risk Factors

There can be instances where your labor expenses increase due to commitments and labor strikes for an increase in wages.

Solution

Some policies will cover the additional labor costs that result from a covered loss; others will offer that coverage as an optional extension. Almost all insurers will offer this form of coverage.

Material Cost escalation Coverage

Risk Factors

There can be a possibility that you gave a quotation for a construction project, but the material prices increased due to changes in the economy.

Solution

This protects the policyholder from any significant increases in the cost of materials and services during the project. If unforeseen economic changes lead to a drastic change in price for certain materials, this policy extension covers that cost.

Builder's Risk Insurance