Protect Your Construction Project

Your Construction Project Deserves Complete Protection

Builders risk insurance protects buildings that are under construction, renovation, or addition. Whether you’re building a new commercial facility, renovating an existing structure, or adding a new wing, this specialized coverage safeguards your financial investment. From the foundation pour to the final inspection, builders risk covers the unique exposures that standard property policies exclude.

As an independent broker representing 142+ carriers, we help contractors, developers, and property owners find builders risk policies tailored to their specific project. We work with both annual policies for continuous operations and single-project policies for one-time builds.

What Builders Risk Insurance Covers

Coverage Type	What It Protects	Typical Limits
Building Under Construction	The structure being built or renovated	Project value or construction contract amount
Materials & Supplies	Raw materials, fixtures, and supplies on-site or in transit	Percentage of project value
Soft Cost Coverage	Additional expenses from construction delays	12-24 months of projected expenses
Equipment & Machinery	Construction equipment, scaffolding, cranes	Scheduled or blanket value
Testing & Commissioning	Coverage during final testing phase	Included or separately scheduled

Building Under Construction

Building under construction coverage protects the structure being built from the moment construction begins through project completion. This includes the foundation, framing, roofing, exterior finishes, permanent fixtures (HVAC, plumbing, electrical), and interior build-out. Covered perils typically include fire, lightning, windstorm, hail, vandalism, theft, and explosion.

We advise clients on choosing between builder’s risk completed value forms (covering the full project value from day one) and reporting forms (where coverage increases as construction progresses). Our carriers offer both options, and we help determine which best fits your project’s cash flow and risk profile.

Materials & Supplies

Materials and supplies coverage protects raw materials, fixtures, and equipment destined for your construction project — whether they’re stored on-site, in a warehouse, or in transit from the supplier. This includes lumber, steel, concrete, windows, doors, cabinets, plumbing fixtures, and electrical components. Many contractors are surprised to learn that materials stored off-site or in transit face significant risks that aren’t covered by standard builders risk policies.

We recommend scheduled coverage for high-value materials like custom millwork, specialty windows, imported stone, and prefabricated components. These items often have long lead times and dedicated sub-limits ensure they’re fully protected throughout the supply chain.

Soft Cost Coverage

Soft cost coverage protects against financial losses when a covered peril delays your construction project beyond its scheduled completion date. During a delay, you still face ongoing expenses: additional loan interest, extended construction permits, legal and accounting fees, real estate taxes, and lost rental income if the project is income-producing. Soft costs can quickly add up to hundreds of thousands of dollars during a prolonged delay.

We help you calculate adequate soft cost limits based on your project timeline, financing structure, and projected revenue. Typical coverage periods are 12 to 24 months, with options to extend if delays persist.

Equipment & Machinery

Equipment and machinery coverage protects the tools and equipment used in your construction project — cranes, scaffolding, hoists, generators, compressors, temporary fencing, and modular site offices. Unlike materials coverage (which covers items being installed), equipment coverage protects the gear you use to build. If a crane is damaged by a windstorm or scaffolding collapses under heavy snow, this coverage pays to repair or replace it.

We offer both scheduled coverage (each piece of equipment listed with a specific value) and blanket coverage (a single limit applies across all equipment). For large projects with specialized equipment, scheduled policies provide more precise protection.

Testing & Commissioning

Testing and commissioning coverage protects your project during the final phase when systems and equipment are tested before formal acceptance. This is a critical but often overlooked exposure — boilers being tested, electrical systems being commissioned, and HVAC systems being balanced are all at elevated risk during startup. Standard builders risk policies may exclude losses that occur during testing unless this coverage is specifically included.

This coverage is particularly important for projects with complex mechanical, electrical, or plumbing systems. We recommend including testing and commissioning coverage as a standard part of any substantial commercial construction project.

Frequently Asked Questions