Builder’s Risk Insurance

Updated: 09 June 2023

What Does Builder’s Risk Insurance Mean?

Builder's risk insurance is a type of property insurance designed to cover projects or buildings against any damages while under construction. Usually, the policy is no longer valid once the building is completed or after occupancy.

It may also be known as course of construction insurance.

Insuranceopedia Explains Builder’s Risk Insurance

Builder's risk insurance may cover damage to the property, including the construction materials, machinery, equipment, scaffolding, landscaping, and more, due to such perils as theft, vandalism, wind, fire, hail, and lightning. It might also cover labor costs and other damages resulting from negligent workmanship or flaw materials.

Exclusions include employee theft, earthquake, water damage, war, government action, mechanical breakdown, voluntary parting and damaged property due to weather while in the open. This type of policy does not cover liability risks, accidents at the project site, and other peoples’ property.


Course of Construction Insurance Builder's Risk Policy

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