What Is Builders Risk Insurance and Who Needs It? 

Builders risk insurance, or course of construction insurance, is a specialized type of property coverage designed to cover buildings and structures under construction. It covers damage to the project caused by events like:

• Fire
• Theft
• Vandalism
• Wind and hail
• Explosion
• Lightning
• Certain types of water damage

This policy typically applies from when construction begins until the project is completed and ready for occupancy. Depending on the policy, it can also cover temporary structures, materials on-site and even materials in transit or stored off-site.

Who Needs Builders Risk Insurance?

Builders risk insurance is essential for:

• General contractors: As the party overseeing the project, contractors often bear responsibility for the site and materials. This coverage protects their financial interests and helps ensure project continuity.
• Property owners and developers: If you’re funding or managing a construction project, builders risk insurance protects your investment during the build.
• Subcontractors: While not always required to carry their own builders risk policy, subcontractors may be named as additional insureds or need coverage for tools and equipment.

Why It Matters

Without builders risk insurance, a single incident, like a fire or storm, could result in massive financial loss and project delays. This coverage helps ensure construction can resume quickly after a setback, minimizing disruption and protecting everyone’s bottom line.

Learn More

Before breaking ground, talk to your insurance agent to tailor a policy that fits your project’s scope, timeline and risk profile. Contact Legacy Insurance to learn about your builders risk coverage options and get a quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.