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What Is Builder's Risk Insurance

To buy, renew, reword midterm, or trigger any type of Builder's Risk Insurance: contact us. We contractually guarantee results including net cost for tailored coverage that we structure and trigger independently of any insurance broker or company for best value to business and investors.


This content is independent of any content coming from insurance brokers, insurers, law firms, or other insurance lobbyists. Commercial insurance is rarely taught in schools, and when it is, it’s mostly done through the lens of brokers or insurers. There are many misconceptions around what is builder's risk insurance, like many other topics in commercial insurance, due to bad habits acquired through the over reliance on insurance brokers or insurers or information providers who are lobbied by them. It is also important to note that insurance has both an operational aspect and a legal aspect, on which we put weights of 95% and 5% respectively in terms of importance to protecting a business and its investors (the point is that going to court to enforce coverage defeats the purpose of buying insurance, so you want to make sure that whatever insurance you buy protects your business right, based on operational data, and pays out fast on large losses).

construct of builder's risk insurance
Most Business and Investors miscalculate the construct of builder's risk insurance.

What Is Builder's Risk Insurance

It is insurance protecting against the risk of property damage and/or liability risk due to a builder's work, which can range from basic internal renovations to comprehensive construction. Contact us if you are looking for Builder's Risk Insurance, we can assist with assigning you an insurance broker, analyzing the fine print of the insurance for you to be adequately protected, triggering the insurance in case of loss, and minimizing your net cost.

Builders Risk

It is a risk specific to the building or construction process, which includes various sub-categories of Builders Risk including but not limited to the following:

  • Damage to buildings, heavy machinery and/or equipment used during construction
  • Structural defects incurred during construction
  • Environmental damage done due to construction leading to fines, penalties, or other forms of liability
  • Other forms of liability that are caused by the construction process

When Is Builders Risk Insurance Required

The insurance is required when there is a contractual obligation for the contractor or the builder performing the work to carry Builder's Risk Insurance. For example, a client mandating that a contractor carry insurance naming the client as additional insured. Another example is that of a landlord requiring insurance upon their tenants who then turn to contractors for renovations and requiring them to carry the insurance so that the tenants are not at fault with their landlord obligations. Depending on the jurisdiction, Builder's Risk Insurance is also required when an industry body or regulatory body requires it by law.

Builders Risk Insurance Deductible

The builders risk insurance deductible is negotiable and should reflect the risk that the builder faces as well as their financial liquidity.

Where To Get Builders Risk Insurance

Any licensed commercial insurance broker can get you builders risk insurance. Contact us and we can assign you the right broker for you, and assist you with making sure the fine print of the insurance fits your needs as well as triggering the insurance for you at loss. You also reduce net cost by having us involved in the process of buying builders risk insurance.

Builders Risk Insurance Providers

Insurance providers for Builders Risk Insurance include global insurance companies such as AIG, Chubb, Zurich, etc. as well as local insurers. Most insurers with expertise in property and commercial liability insurance should be able to underwrite and provide Builders Risk Insurance.

What Is Builder's Risk Insurance In Different Geographies

The Builders Risk insurance policy is different from one insurer to another and across different jurisdictions. Make sure to hire risk experts such as ourselves who are independent of insurance brokers or companies and who can guide you through a relevant builders risk policy. The following is a random list outlining different builders risk insurance available yet that can be materially different when analyzing each insurance's coverage details:

  • builders risk insurance Alberta
  • builders risk insurance Australia
  • builders risk insurance Arizona
  • builders risk insurance in Florida - note that geographies such as Florida that are more susceptible to storms may have materially different policy wording
  • builders risk insurance Georgia
  • builders risk insurance Houston
  • builders risk insurance Louisiana
  • builders risk insurance Massachusetts
  • builders risk insurance New York
  • builders risk insurance Oklahoma
  • builders risk insurance San Antonio
  • builders risk insurance Toronto
  • builders risk insurance Virginia
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