Builders Risk Insurance
From ground-breaking to final inspection, builders risk protects the structure you're building — and the investment behind it — against the losses that happen when a project is at its most vulnerable.
A building under construction has no permanent coverage. Builders risk fills that gap.
Standard commercial property insurance covers completed, occupied buildings. But a structure under construction — with open walls, temporary materials, stored equipment, and changing conditions on site every day — is a different kind of risk entirely. Builders risk is the coverage specifically designed for that window: from the first shovel in the ground to the certificate of occupancy.
Builders risk covers the structure itself, materials stored on-site and in transit, and in some cases temporary structures, scaffolding, and soft costs like architectural fees and loan interest that accumulate if a covered loss delays the project.
Most lenders require builders risk as a condition of a construction loan. Most general contractors require it before a project begins. And most project owners need it to protect the largest investment they'll make until the project is complete and a permanent property policy takes over.
What this coverage does for you
- Covers the structure under construction from ground-breaking through completion
- Materials and supplies covered on-site, in transit, and at temporary storage
- Soft costs coverage available — architect fees, loan interest, permit costs
- Available for new construction, major renovation, and tenant improvements
- Can be written on a completed value or reporting form basis
- Coverage transfers seamlessly when a permanent property policy takes over
What builders risk covers.
Coverage is tied to the construction project — it attaches at groundbreaking and expires at completion or occupancy.
Structure Under Construction
The building or structure being built or renovated, including all permanently installed fixtures and equipment. Coverage applies from the first day of construction through project completion.
Materials & Supplies
Building materials, supplies, and equipment intended to become part of the completed structure — whether stored on-site, at a temporary staging area, or in transit to the job site.
Soft Costs
Additional costs incurred as a result of a covered loss that delays project completion — including architectural and engineering fees, financing costs, real estate taxes, and additional permit fees.
Temporary Structures
Scaffolding, temporary buildings, construction trailers, and similar temporary structures used during the construction process — often overlooked in standard project budgets.
Renovation & Tenant Improvement
Builders risk isn't just for new construction. Major renovations, additions, and tenant improvements to existing occupied or vacant buildings are common builders risk placements.
Covered Perils
Fire, lightning, explosion, windstorm, hail, theft, vandalism, and collapse are standard covered perils. Flood and earthquake are typically excluded but available by endorsement or as a separate policy.
Common questions.
It depends on the contract. On most projects, the property owner or developer purchases builders risk and names the general contractor and lender as additional insureds. On some design-build or contractor-led projects, the GC purchases and passes the cost through. We'll review your contract language and make sure the policy is structured to match your obligations.
Coverage begins on the date construction starts (or the policy inception date, whichever is later) and expires at the earliest of: project completion, occupancy, the policy expiration date, or a specified number of days after construction is substantially complete. The policy should be in place before any physical work begins.
The builders risk policy typically covers the project as a whole — including work performed by subcontractors — but does not replace each subcontractor's own liability or property insurance. Subs should carry their own GL, tools, and equipment coverage. We'll help you think through how the coverages interact.
Builders risk coverage ends at project completion or occupancy. At that point, a permanent commercial property policy takes over. We coordinate the transition so there's no gap in coverage between the two policies.
Standard builders risk policies exclude flood and earthquake. Both can typically be added by endorsement or through a separate policy — and for projects in flood zones or seismically active areas, we strongly recommend addressing those exposures specifically.
A completed value form insures the project at its projected final value from day one — simpler to administer and most common for standard projects. A reporting form requires periodic reports of actual values in place and adjusts premiums accordingly — better for very large or long-duration projects where costs are uncertain at inception.
Building something? Let's protect it.
Whether it's new construction, a major renovation, or a tenant build-out — we'll get the right builders risk policy in place before work begins.