Builders Risk Insurance

Builders Risk Insurance

All construction projects, regardless of the size or complexity level, come with risks. While experience and appropriate safety measures greatly reduce risks, builder’s risk insurance offers an added and essential layer of protection. If you’re planning a new build or renovating, we recommend you get an insurance policy. At, we’ll find you the right coverage to ensure your interests are adequately protected.

Builders Risk Insurance FAQs

Below we tell you all about builder’s insurance and why you need it.

What is Builder’s Risk Insurance?

Builder’ risk insurance, also called course of construction insurance, is a policy that covers property owners and workers during a construction project, including underground work. This kind of policy protects workers and builders from dangers arising from new build, renovations, and remodels. It also offers coverage for structures, equipment, and materials against hazards like theft, fire, and vandalism once the project takes off.

What’s The Difference: Builder’s Risk Vs General Liability?

Builder’s risk insurance covers loss or damage to the building materials or buildings. The coverage ends after work is completed and the building is ready for use. On the other hand, general liability offers coverage for bodily injury or property damage caused by accidents on the job. Further, the policy provides protection during and after completing the project.

What Is The Importance Of Builder’s Risk Insurance?

Anything might happen on the worksite. Delays and damages can cost everyone on the job a lot. Without new construction insurance, you’ll have to pay for the losses on your own. But builder’s risk insurance takes this burden off of you. In some instances, it’s mandatory to have this type of policy according to the law.

Who Should Get Builder’s Risk Insurance?

Builder insurance is mainly purchased by the property owner or lead contractor. It’s important to agree beforehand on who’ll buy the policy.

Do All Construction Projects Require Builder’s Risk Insurance?

Builder’s risk coverage applies to all types of construction projects. Some of the projects that legally need a builder’s risk insurance or could benefit from the policy are:

  • Custom homes
  • Commercial and residential new builds
  • Commercial and residential renovations
  • Tenants improvement projects

Are There Different Types of Builder’s Risk Insurance?

The various options include Loss of Business Income, soft costs, and hard costs.

  • Loss of Business Income – This caters to losses from loss of use of the building.
  • Soft Costs – Engineering losses and legal fees are covered under soft costs.
  • Hard Costs – This covers the building under construction and all its components like fixtures, equipment, and materials in case of events like vandalism, fire, and theft.

How Are Course of Construction Quotes Given?

Your builder’s liability insurance rates will be based on different aspects of the project. Prevention of serious loss and risk mitigation are crucial to homeowners and businesses. Therefore, the pricing with be determined by various factors such as:

  • Construction value
  • Project duration
  • History of loss
  • Deductibles
  • Value of materials and structures involved
  • Contractors’ experience

Ensure You’re Protected With Builder’s Risk Insurance

If you’re a homeowner, builder, or construction firm working on a new build or remodelling project, you’re exposed to various risks such as accidents or damage to property. To make sure you’re protected, it’s essential to get builder’s risk insurance. At, our expert brokers will first understand the nature of your risks and shop for the best coverage that addresses your unique needs. Quickly compare rates from top insurance providers: