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Home » Business Insurance Center » Builder’s Risk

Builder’s Risk

Builder’s Risk Insurance, also known as Course of Construction (COC) insurance, safeguards the financial interests of stakeholders involved in construction projects by providing comprehensive coverage against property damage, theft, and unforeseen disruptions. Whether for new construction or remodeling, this insurance policy ensures that valuable materials, equipment, and the unfinished structure are protected from significant risks like fire, vandalism, extreme weather, and accidents.

Its purpose is to minimize financial losses that could derail the project or cause major delays. The policy is essential for both commercial and residential projects, offering peace of mind to developers, contractors, and property owners by mitigating the financial risks associated with construction. With its specialized coverage, Builder’s Risk provides a critical layer of security that keeps projects on track and prevents costly setbacks, making it an indispensable tool for managing construction ventures.

  • Buildings and structures that are under construction, including temporary storage buildings, fencing and scaffolding
  • Equipment as long as the equipment is covered under the policy
  • Materials and supplies being used
  • Project electronic data and blueprints
  • Labor
  • Ordinance and law costs, or rebuild due to building codes and laws at the time of the loss or the increased cost to repair.
  • *Other coverages can be added to your Builder’s Risk Policy.
  • *The coverages above are common coverages.
  • Acts of terrorism and war
  • Damage due to faulty design
  • Employee theft
  • Work Vehicles
  • Mechanical Breakdowns
  • Rust and Corrosion
  • Earthquake
  • Flood
  • Wear and Tear

Who should get Builder’s Risk?
  • Architects: Involved in overseeing construction projects, architects rely on Builder’s Risk insurance to protect the value of their designs, ensuring their work is safeguarded from construction-related risks.
  • Engineers: Engineers contribute to the structural design and overall project integrity. This insurance safeguards the systems and components they’re responsible for, helping them manage unexpected losses.
  • Building Owners: Property owners who invest in new construction or remodeling projects need protection against potential losses that could affect their investment.
  • Builders: As primary coordinators of construction projects, builders should secure coverage for the property, materials, and equipment used.
  • Development and Investment Companies: These companies often finance high-value projects. Builder’s Risk helps them minimize financial risks related to construction delays or damages.
  • General Contractors: Responsible for managing various teams and coordinating the project, general contractors should secure coverage for their work and reputation.
  • Lenders: Lenders financing construction projects often require Builder’s Risk insurance to ensure their collateral is protected and their investments are secure.
  • Subcontractors: Subcontractors provide specialized skills for construction projects. This insurance protects their work and materials from unforeseen damages.

If you’ve decided to purchase a Builder’s Risk policy, it’s crucial to obtain coverage before the project starts. This ensures that the insurance company will cover the costs of work and property created after the coverage start date. Any work done before your policy begins will not be protected.