As a business owner, you care about protecting yourself, your business, and your employees. You may already have a General Liability policy and a Property policy, but is each of your building projects covered during the course of construction?

Here, Jennifer Morgan, an Assistant Underwriting Operations Manager at Builders Mutual, explains why having a Builders Risk policy takes the risk out of your new residential, new commercial, and renovation builds.

Builders Risk protects you from the moment ground is broken until the building is completed and occupied. Generally speaking, Builders Risk provides flexible project-based offsite property coverage for general contractors during the course of construction. This coverage fills in the exclusion gaps of Property policies, because those policies may not cover a building under construction.

And it’s not just the structure itself that is protected. Builders Risk provides coverage for all your materials—onsite and in transit—and all property components impacted by the build. If it’s part of your build, it’s covered. This comprehensive policy also protects you against job-site theft, public works accidents, and natural disasters. Builders Risk coverage includes, but is not limited to:

  • Scaffolding and Safety Equipment
  • Temporary Structures
  • Materials Theft
  • Debris Removal
  • Pollution Cleanup and Removal
  • Fences
  • Trees
  • Outdoor Property
  • Profit
  • Onsite Wood/Materials Piles
  • Fixtures
  • Cabinets
  • Countertops


A non-negotiable

Because of the exclusions within Property and Liability coverage, it is strongly recommended that every project have a Builders Risk policy put in place. If damage or theft occurs during the build, someone has to be responsible, and most contracts point to the builder. So, you must protect your money and resources on every project. No exceptions. In rare cases, a contract may designate the homeowner as being responsible for acquiring Builders Risk insurance. In this scenario, it is recommended that you review the policy carefully to ensure it covers all builder interests. 

Builders Mutual offers two types of Builders Risk policies with varying rates and coverage specs, so no matter the type of builder you are, suitable coverage is available to meet your needs.

Enhanced Builders Risk (EBR)

A one-shot Builders Risk product ideal for residential and commercial builders who desire one policy per location.

Monthly Reporting

Monthly Rate: Perfect for the residential home builder with more than 10 starts per year and an average project completion of four months or less.

Annual Rate: Appropriate for the residential home builder with more than 10 starts per year and an average project completion greater than four months.

If you’re in construction, talk with your agent about how to best protect yourself, your property and resources, and your bottom line during the course of a build. The fact is, a Builders Risk policy should be a non-negotiable part of every project you start. It’s just smart business.