Builders’ Risk Coverage


Businesses may be interested in building a manufacturing plant, offices or other business property, or they may be extensively expanding a current business property. When construction is underway, it is important for contractors to have builders’ risk coverage to cover the materials and structure during the construction phase.


What Is a Builders’ Risk Policy?

Builders’ Risk insurance policies pay for damages and losses on a construction site in the event of weather-related damage, fire, theft, vandalism, vehicle collisions on the site and other losses that can affect construction. This type of policy is important to protect both the contractors and the business owners from losses that can impact the overall cost of the construction project.



Understanding Builders Risk Coverage

A builders risk insurance policy, also sometimes known as Course of Construction coverage, is designed to cover some of the risks that can impact the building, materials or both elements in a new construction or renovation project. This coverage protects contractors or other policyholders up to the coverage limit for the predetermined period the project is to take place. If a project runs over expected time, a company can extend its builders risk coverage once.

Some builders and property owners require contractors or building or renovation providers to carry builders risk insurance. This policy offers protection against fire, hail, wind, theft — but not employee theft — lightning, vehicles, explosions, and vandalism. It recognizes that a great deal can go wrong during the building phase, and any damage to materials or the building can delay a construction project or require the replacement of expensive building materials, which can contribute to total costs.

importance of builder's risk coverage

This insurance will not cover workplace accidents, tools, equipment, professional liability, sub-contractors or other parties’ property, but it does add a layer of protection to those who are actively investing in a building project. For example, with this type of coverage, it is important that the coverage limits on the policy correctly represent the final completed value of the structure, including the labor and materials costs as these costs. Since these costs can change over the course of a construction project, you’ll want to speak with a professional at Gunn-Mowery to ensure you get the right policy.

Another consideration with Builders’ Risk coverage is that the policies cover three months, six months or one year of construction. As many businesses know, unexpected construction delays are quite common. Often, policy terms can only be extended one additional time. A professional at Gunn-Mowery can work with you to ensure you get the right terms on your policy to fully protect you during the entire construction process. 


Who needs Builders Risk Coverage?

Specialty trade contractors, general contractors, real estate developers and building owners can all benefit from builders risk liability insurance. All these parties face considerable risk due to delays in a construction project or damage of materials. A sudden storm that soaks through exposed drywall and breaks windows can end up costing tens of thousands of dollars in materials, as well as additional labor costs to fix. Without insurance, contractors or owners need to carry these costs themselves.


Working With Gunn-Mowery

If you’re interested in a Builders’ Risk policy, it’s important to contact one of our experts who will walk you through the requirements for this type of insurance. The Upside of working with Gunn-Mowery for your insurance needs is that we work harder to ensure you get the service and coverage you require. This can be especially important with builders’ risk coverage since there are specific needs.

Gunn-Mowery is an independent insurance agency, meaning we work with multiple insurance companies but are not beholden to any of them. Our main priority is to bring you the insurance coverage and the insurance savings you need to succeed in business. Whatever your insurance needs, you can reach out to us for a free quote today.



Get a Free Quote
Type of Quote
Personal Insurance
Commercial Insurance
Employee Benefits
Surety Bonds