For commercial contractors, securing the appropriate insurance coverage is vital to safeguard both business assets and active construction projects. Standard property insurance typically covers your office equipment, but it often doesn’t extend to materials, tools or equipment at jobsites. That’s where builders risk insurance comes in.

What Is Builders Risk Insurance?

Builder risk insurance can offer coverage for property damage that might occur during the course of a construction project. It’s essential to have a policy tailored to your specific risks and reliable enough to support you when it matters most.

Whether you’re managing general construction or a specialized project, you’re responsible for completing the project on time, within budget and to the required standards. However, unexpected property damage can cause costly delays. Builders risk insurance can help protect your interests—as well as those of property owners, architects and subcontractors—by covering damage that occurs during construction.

What Does Builders Risk Insurance Cover?

Builders risk insurance supports contractors and property owners overseeing construction projects. Coverage options vary depending on the project type and needs, including:

• New construction coverage can financially protect new builds from the start of construction until completion.

• Remodeling coverage can help financially cover damage to properties undergoing renovations, such as home additions or interior upgrades.

• Installation coverage applies to materials and equipment stored on-site before installation. If these items are stolen or damaged, this coverage can help with recovery costs.

Some policies may also include premises liability coverage, which can help protect against third-party injuries or property damage occurring on the jobsite. However, this may also be covered under other liability policies in your commercial insurance plan.

Who Needs Builders Risk Insurance?

This insurance is beneficial not only for contractors but also for property owners and businesses managing their own construction projects. Essentially, anyone with a financial stake in a construction project should consider this coverage.

It’s crucial to have a policy in place before work begins. In many cases, contracts require builders risk insurance to be active at the start of the project.

Learn More

For builders risk insurance near you, contact Berger Briggs Insurance.