Builders Risk Insurance is a type of property insurance covering buildings under construction, materials & labor costs, and other expenses associated with either a Residential or Commercial construction or remodel project.

These important insurance policies can be written on a three, six, and twelve month basis or even a reporting form basis for Developers and Spec Home builders. And since construction projects are prone to delays, Builders Risk insurance carriers are usually able to extend the policy at least once if the project is not completed on time.

A Builders Risk insurance policy differs from a Commercial General Liability (CGL) policy in that a CGL policy covers bodily injury or property damage to a third party due to the policy holder’s alleged negligent acts. Basically, the policy holder never receives any checks from the insurance carrier with a CGL policy; the checks always go to the person who was injured or owned the damaged property. A Builders Risk insurance policy pays out to the holder of the policy, meaning if a building is damaged due to a covered loss, the insurance carrier is cutting the check to the holder of the policy so construction can resume.