Our Builders Risk Insurance Tool allows you to pick the policy that's right for you by comparing every plan offered by Canada's leading providers. The Frequently Asked Questions can help you learn more about this coverage area.
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Frequently Asked Questions(click to expand)
What Is Builders Risk Insurance?
During the construction of a new building -- or the modification of an existing one -- damage can accidentally be caused to the structure or fixtures. Building materials and tools also require coverage, not only for breaking but also for storage and their transportation to and from working sites.
Builders Risk can also be known as Course of Construction insurance, Contract Works insurance or Contractor’s All Risk insurance.
Who Is Builders Risk Insurance For?
That’s not to say contractors aren’t eligible for coverage. Anyone you might typically associate with construction sites: electricians, carpenters, roofers, framers, welders, and others can all be covered under Builders Risk insurance. One rule of thumb: as long as the work is connected to the course of construction, regardless of the trade, Builders Risk insurance will still apply.
What Types Of Project Need Builders Risk Insurance?
- new construction
What Does Builders Risk Insurance Cover?
- damage caused by fire, wind, lightning, rain or hail
- building collapse
- impact from vehicles
- loss or damage to building tools and materials on site (and their transportation/storage)
- renovation or improvement costs
- pollution clean-up and removal from site
- back-up or overflow from sewers or drains
What Is Not Covered By Builders Risk Insurance?
- damage caused by a natural disaster (earthquake, hurricane or flooding)
- machinery and equipment breakdown due to negligence
- faulty design or workmanship
- intentional acts or deliberate vandalism
- additional works carried out on the same site (a new policy will need to be written for each project)
- bodily injury or general liability claims
More extensive Builders Risk insurance policies may include some of these as add-ons or extensions, however they are not normally included under standard packages. It is important, therefore, to browse and compare different types of product available to see which one mostly fits your requirements.
How Much Does Builders Risk Insurance Cost?
As some policies are more inclusive than others it may sometimes be cheaper to buy an extensive one rather than purchasing a basic policy with several expensive add-ons.