Builders risk insurance, also known as Course of Construction insurance, is a specialized type of property insurance that’s intended to provide coverage for buildings and structures while they are under construction.

These policies protect project owners, general contractors and subcontractors against direct physical loss or damage to covered property.

Builders risk policies can also provide coverage for materials and supplies that are on-site, in transit and being stored temporarily at off-site locations if they are intended to become a permanent part of a building or structure.

These policies can be written to include coverage for loss of income and additional expenses.

This coverage would apply if the completion of the project is delayed due to an insured property damage loss.

Builders risk coverage is a temporary form of insurance, which applies only during the course of construction, erection and fabrication processes.

Normally builders risk policies stay in force until a construction project is completed.

Once construction is completed, it is up to the owner of the building or structure to secure a traditional property insurance policy.

Policies can vary between insurance carriers, and, in many cases, the terms of a builders risk policy can be negotiated.

Builders risk insurance can cover a wide range of property damage losses.

The exact parameters of your policy may vary, but in general, builders risk insurance includes coverage for the following causes of property damage:

Fire
Wind
Hail
Theft
Lightning
Explosion
Impact by vehicle or aircraft
Vandalism

Builders risk policies often do not provide coverage for property damage caused by flaws in design, planning or workmanship and other specific exclusions may be included in your policy.

While exclusions vary from policy to policy, the following causes of loss are typically not covered under builders risk policies:

Property damage caused by employee dishonesty or theft
Property damage caused by earthquakes
Acts of war
Government actions
Mechanical breakdowns

It’s important to go through your policy terms carefully in order to make sure you are aware of what is and isn’t covered under your builders risk policy.

Protect your project, your wallet and your company with a properly designed course of construction policy.

We are available any time to answer your insurance or risk management questions. We will see you again soon!