Builder’s risk insurance, also known as Course of Construction, is a specialized first party property insurance product that covers loss or damage to a project during the construction phase. A basic builder’s risk insurance policy will also cover materials, supplies and other products during transport and storage that are intended to be included in the project. This insurance policy isn’t only a best practice; it’s often mandated by lenders, owners and contractors in order to meet certain contractual obligations.

Builder’s risk insurance coverage only lasts for the duration of construction to protect against property damage and delay. Individuals or companies can also opt to add additional enhancements such as loss of income, damage to an existing structure and Flood, Windstorm and Earthquake coverage.

Even the most carefully planned projects are susceptible to risk. This is where investing in comprehensive builder’s risk insurance becomes critical for any construction project.

Builder’s risk insurance safeguards companies or individuals from damages related to construction risk, increasing the likelihood of successful project completion.

For example, as the frequency and intensity of weather conditions increase year over year, construction projects are more likely to be susceptible to damage by these events resulting in delays. These delays can end up amounting in millions of dollars in losses. Rather than leaving your project at the mercy of unexpected weather conditions or incidents of theft, arson, vandalism and other exposures, Builder’s Risk Insurance ensures that you and any other financial stakeholders are secured against potentially damaging delays.

Investing in builder’s risk insurance is also an important way to uphold your reputation in the market. If your company consistently incurs damages and delays resulting in losses along the way, potential stakeholders may lose interest in working with you on future projects. Insuring your project and mitigating your overall builder’s risk increases the likelihood of productive, strong working relationships that will benefit your projects for years to come.

Any party that has a financial interest in the completion of a construction project should invest in builder’s risk insurance. This includes:

• Owners/Developers
• General Contractors
• Subcontractors
• Lenders

Just like every construction project is different, so is every builder’s risk insurance policy. Policies are not standardized and therefore can contain different coverage inclusions and exclusions. Work with a vetted insurance brokerage firm that can guide you through the complexities of Builder’s Risk Insurance and create a coverage strategy that is tailored to your specific construction project.

When it comes to selecting the right coverage for your construction project, Alliant is your trusted builder’s risk insurance advisor. As the premier specialty insurance brokerage firm, Alliant has long-standing relationships with builder’s risk insurance carriers and a veteran team of experienced brokers ready to provide tailor-made coverage.

We take the time to understand the intricacies of your intended construction project, including time frame, goals and unique risks, and make high-level recommendations to guide you through finding the right insurance plan. With an insurance broker like Alliant on your side, you’ll have everything you need to protect yourself and build resilience in the face of unforeseen circumstances.