The Basics of Course of Construction Insurance

A builders risk insurance policy will typically cover new construction from the ground up phase, installation projects or remodeling projects. There are several terms used to identify this insurance coverage, though the more common are course of construction policies or commercial builders risk insurance. In addition to going by different names, there are different types of policies that range from straightforward coverage to more complex ones.

The Coverage Areas

Under a builders risk policy, construction sites are protected from loss and damage for a number of situations. The most common inclusions are:

  • Theft
  • Vandalism
  • Fire
  • Weather damage

However, there are optional coverages that can be added to address the loss of business income, ordinance or law risks, earthquakes, floods, windstorms or soft costs. These policies help recoup costs associated with repair or replacement to buildings or projects in progress that are typically excluded from a property liability policy. These policies do not address the liabilities of injuries or accidents that occur to employees or individuals on the property.

The Parties Involved

There are many people who would want a builders risk policy in place before a construction project begins. The contractor, the financier, the project owner or subcontractors are all potential parties that will take out a course of construction insurance policy.

Project insurance is a must, particularity if you want to avoid the costly expenses of replacing stolen or damaged fencing, construction materials, scaffolding, temporary structures and more. Find out more about builders risk coverage from your local agent.