What is builder’s risk insurance?

Builder's risk insurance covers damage to a construction project caused by weather, fire, vandalism, or theft. If an unexpected event harms the structure or materials on your construction site, this insurance policy pays for the repairs or replacements needed to get the project back on track.

Because of this protection, builder's risk insurance is a key policy for construction and contracting businesses. In fact, your clients might request that you carry this policy before you begin work.

Learn more about builder's risk insurance coverage.

Builder’s risk insurance is a type of property insurance that lasts only for the duration of a construction project. The policy usually goes into effect before the first materials arrive at the construction site and it expires as soon as the project is complete. It may be added as an endorsement or purchased as a separate policy.

Anyone with a financial stake in a construction project can purchase builder’s risk insurance to protect their investment from weather, fire, vandalism, or theft. General contractors, subcontractors, and property owners can purchase this insurance policy.

Builder’s risk insurance is usually more important for contractors than property owners, since courts typically hold contractors liable for construction site damage.

• What is builder’s risk insurance?
• How a builder’s risk insurance policy can protect your business