Why is Builders Risk insurance important?

Whether you are a custom home builder, real estate owner or a commercial contractor, we can provide insurance coverage that protects your construction project, while conforming with your lender’s requirements. We offer coverage for insurable interest in materials, supplies, equipment and real property during construction or renovation of a building or structure. It’s paramount to assess the construction project and determine which coverage terms will best protect the owner’s interests. Coverage terms can vary significantly.

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To reduce the likelihood of claims and obtain best-in-class pricing, it's important to work with an insurance professional who understands your construction timelines, vets potential contractors, reviews applicable contracts and helps implement safety and security practices.

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Other coverages typically paired with Builders Risk include but are not limited to:

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• Owner's & Contractors Protective Liability (OCP) - Protects the project owner or general contractor from liability due to the negligence of a contractor or subcontractor arising from a specified construction project. This coverage provides a standalone tower of liability specifically allocated for a particular project.

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• Owner's Interest Liability (OI) - Provides full General Liability protection to the project owner for their liability arising out of the premises, regardless of who causes the injury. This can include coverage for Product & Completed Operations and Personal and Advertising Injury.

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Claims Example:

A framing contractor during the construction process had incorrectly installed several wall studs which caused a partial collapse. The resulting damages were $45,000 and the faulty framing work that was also damaged totaled $15,000 (including labor and materials). In this example, the ensuing damages were covered ($45,000) but the actual framing work performed that was faulty was not insurable. Many policies do not include broadened coverage terms to include the cost to replace and rectify the "faulty work or product" from preventing further damage (coverage needed is LEG3).