Builder’s risk insurance, sometimes referred to as course of construction insurance, covers a contractor’s property, material and equipment relating to a building or project under construction. It can be used to cover ground-up new structures or the renovation of existing structures. The coverage typically continues until the building project is complete and is signed off on by the owner.
There are no standardized policy forms for builder’s risk insurance because every construction project is different. As a result, this type of insurance is often misunderstood and deemed overly complex by contractors. But as The Hartford puts it: “If properly structured, a builder’s risk policy is the backbone for a [contractor’s] successful risk management program.”
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