Builders Risk Insurance provides coverage for buildings under construction, including materials and equipment. It’s typically purchased by contractors or property developers.
Builders Risk Insurance That Keeps Your Projects on Track
From ground-up construction to major renovations, Alliance Risk offers specialized Builders Risk solutions that protect your project from start to finish. With flexible coverage terms and strong carrier partnerships, we keep your timelines secure and your capital protected.
Our Approach to Builders Risk
- Project Scope Review & Risk Benchmarking
We evaluate timeline, geography, materials, and subcontractor risks to tailor coverage precisely. - Owner, Developer, and Contractor Collaboration
Work hand-in-hand with all stakeholders to align on protection priorities. - Delay Mitigation & Soft Cost Protection
Account for business interruption, loan interest, and additional expenses. - Support for OCIPs, CCIPs & Wrap-Ups
Structuring for large-scale builds or multi-party projects.
The Alliance Risk Difference
- Ground-Up Construction & Renovation Coverage
Whether you’re building from scratch or upgrading existing structures, we ensure full coverage of the physical structure and work-in-progress. - Inland Marine & Equipment Add-Ons
We include tools, machinery, and materials in transit or stored off-site, eliminating coverage gaps common in standard policies. - Transit, Theft & Weather Protection
Protection against loss or damage due to delivery mishaps, job-site theft, or severe weather events during the build. - Tailored Terms for Builders & Developers
Custom coverage terms and limits that align with project scope, financing, and lender insurance requirements. - Claims Advocacy from Start to Closeout
In the event of damage or delay, our construction claims team ensures fast recovery, reduced downtime, and minimal financial disruption.
What Is Builders Risk Insurance?
Builders Risk Insurance (also known as Course of Construction Insurance) protects buildings under construction or renovation from damage caused by fire, theft, vandalism, wind, and more. It can cover the structure itself, on-site materials, temporary structures, and sometimes soft costs.
Who Needs Builders Risk Insurance?
Construction is inherently risky. A fire, storm, or theft during a build can derail schedules, add major costs, and lead to lawsuits. Builders Risk Insurance helps ensure that a single incident doesn’t destroy your entire project timeline or budget.
Common industries that often require Builders Risk Insurance include:
- Property Owners
- Real Estate Investors
- Developers
- General Contractors (GC’s)
- Construction Managers
- Builders and Design-build Firms
- Architecture Firms
- Engineering Firms
What Does Builders Risk Insurance Cover?
Builders Risk Insurance typically covers:
- On-site damage to buildings under construction
- Construction materials and equipment stored on-site
- Temporary structures like scaffolding or fencing
- Fire, wind, theft, lightning, vandalism, and some water damage
- Optional: Soft costs like permit fees, design fees, and loan interest
What Doesn’t Builders Risk Insurance Cover?
While Builders Risk Insurance offers broad protection, it doesn’t cover:
- Normal wear and tear
- Employee injuries (covered under Workers’ Comp)
- Tools and heavy equipment (covered under Equipment or Inland Marine)
- Professional liability (requires E&O coverage)
- Earthquake or flood (must be endorsed or purchased separately)
How Much Does Builders Risk Insurance Cost?
The cost of Builders Risk Insurance varies based on factors like business size, industry, location, and claims history.
Key Cost Factors:
- Total construction cost
- Type of construction (wood, concrete, steel)
- Project duration
- Location and site conditions
- Coverage terms (including soft costs and extensions)
Typical Cost Range:
- Percentage: 1%–4% of total construction value
- Example: For a $5M build, expect $25,000–$100,000 in premium cost
Risk Management Tips
To minimize potential claims:
- Secure the construction site with fencing, surveillance, and controlled access.
- Store high-value materials in locked containers and off-ground when possible.
- Monitor weather forecasts and cover exposed areas during vulnerable periods.
- Implement strict subcontractor credentialing and safety compliance processes.
- Maintain up-to-date construction timelines and document any changes or delays.
- Conduct periodic safety and security audits during project phases.