A structure under construction isn’t yet insurable the way a finished building is — it’s a work in progress, often with materials on-site that aren’t installed yet and no completed structure to underwrite. Builders Risk is built specifically to cover that in-between period.
What It Covers
Builders Risk covers the structure itself, along with materials and fixtures intended for it, against loss during construction — fire, weather, vandalism, and theft of installed or on-site materials are common covered causes of loss, depending on the policy.
What It Doesn’t Cover
Tools and equipment used to do the work — that’s Inland Marine, a separate coverage.
Injuries to workers on-site — that’s Workers’ Compensation.
Faulty workmanship itself, though resulting damage from it may be covered depending on the policy.
How Long It Lasts
Unlike most commercial policies, Builders Risk is typically written for the specific duration of a project rather than a standard annual term, and needs to be renewed or extended if a project runs long.
Who Needs to Be Named
Depending on the project, the property owner, general contractor, and any lender with a financial interest in the project may all need to be named on the policy — a common requirement worth confirming before the policy is bound, not after a loss.
Starting a new project that needs Builders Risk coverage? Request a Quote and we’ll get the right parties named from the start.