Builder’s Risk

Builder’s risk insurance protects your interest in materials, fixtures and/or equipment awaiting installation (or after installation) during construction or renovation of a building or structure.

Illustration Business Men on Construction Site

At HUB International, we provide businesses with comprehensive and affordable builder’s risk insurance coverage.

How Builder’s Risk Insurance Works

Builder’s Risk is a type of property insurance covering projects currently in progress.

Applying to the project’s length, it can cover:

  • The structure being created
  • Materials and fixtures, at the site or in transport
  • The area on which the structure will stand, including any landscaping
  • The equipment used
  • Labor related to the structure
  • Any temporary structures, including cribbing, scaffolding and fencing
  • Debris removal
  • Profit

Ideal for new projects, renovations and proposed developments, builder’s risk can help uphold your reputation as a contractor. After all, you don’t want to be known for incomplete or incorrect work that you cannot afford to fix. For these reasons, project managers and landowners expect you to have builder’s risk coverage.

What to Expect from Your Builder’s Risk Policy

In general, your policy limit must reflect the construction budget. This includes the full cost of the project, from the materials and equipment used to the amount of labor needed – land value is excluded. Length of coverage is also written for the project’s timeline, from three to 12 months, although this period can be extended if the project requires more time.

Keep in mind, coverage only applies to structural damage in certain instances, including:

  • Fire
  • Lightning
  • Hail
  • Wind, outside of coastal areas
  • Explosions
  • Vandalism
  • Structural collapse, under specific conditions

Builder’s risk cannot be used for every accident or incident; the following are not included:

  • Injuries and other liability claims
  • Earthquakes
  • Water damage
  • Incompletion
  • Equipment breakdowns
  • War and other government actions
  • Faulty design, planning, construction and materials

Although this coverage is typically purchased by contractors, others doing renovations and more extensive projects can also benefit from builder’s risk, including:

  • Property owners
  • Home owners
  • School districts
  • Retailers
  • House flippers
  • Investment and development companies
for a builder’s risk insurance quote!