One Project. Its Own Coverage.
A standalone professional liability policy structured around a single project, keeping that exposure separate from your firm's annual program.
Once construction begins, the structure, materials on site, and equipment in use are not covered under a standard commercial property policy.
Builders risk is designed specifically for the construction phase, intended to respond to physical loss or damage to a project in progress, subject to policy terms and covered causes of loss.
Coverage Overview
What Builders Risk Is Intended to Cover
The Structure Under Construction
Responds to physical loss or damage to the building being built, subject to covered causes of loss.
Materials and Supplies
Addresses loss or damage to materials on site, in transit, or temporarily stored off site.
Temporary Structures
Scaffolding and formwork may be included depending on the policy form and project type.
When to Consider It
Where Builders Risk Tends to Be Relevant
General Contractors
Intended to address physical loss to the work in progress, limiting financial exposure from covered losses on site.
Project Owners and Developers
A shared policy covering all parties reduces friction when a claim arises.
Design-Build Firms
When one firm carries responsibility for both design and construction, builders risk is typically a core component of the program.
Key Considerations
A Few Things Worth Reviewing
Place Coverage Before Work Begins
Coverage is broadest before the project breaks ground. Policies placed after construction starts frequently come with restrictions.
Insure to the Completed Value
Coverage should reflect the completed value, not current costs. Underinsuring at inception can significantly affect how a claim is addressed.
Policy Period and Extensions
Construction timelines shift. We build in provisions for extensions so coverage accommodates schedule changes.
Coordinate With Other Project Policies
Gaps between builders risk, GL, and professional liability need to be addressed at placement.
The Process
Deliberate at Every Step
Step 1
Understand the Project
Construction type, completed value, timeline, and who holds insurable interest inform how the policy is structured.
Step 2
Review Soft Costs and Additional Coverages
We assess whether soft costs or other coverages are worth structuring into the policy.
Step 3
Coordinate With Other Coverages
We review the full project coverage program to make sure there are no gaps between policies.
Worth Knowing
Questions That Come Up Often
Does my commercial property policy cover a project under construction?
Standard commercial property policies typically exclude structures under construction. Builders risk is designed specifically to address the construction phase — separate from and complementary to your ongoing property coverage.
Who purchases builders risk — the owner or the contractor?
Either may purchase builders risk depending on the contract structure and project requirements. Owner-purchased policies are common on larger projects, while contractors may secure coverage independently when required.
What happens when the project is complete?
Builders risk is generally intended to end once the project reaches completion or is put to its intended use. The appropriate end point depends on how the policy is structured.
Often Paired With
What Firms Typically Review Together
General & Property Liability (BOP)
Helps respond when someone claims your business caused bodily injury or property damage.
Professional Liability
Helps respond when a client alleges your professional services caused a financial loss, project issue, or other damages.
Environmental Liability
Helps respond to certain claims involving pollution, contamination, mold, indoor air quality, or environmental conditions.
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