Builders risk insurance
for commercial construction

Builders risk — also called course-of-construction insurance — is a specialized property policy that covers a building or structure while it is being built or renovated, along with the materials and fixtures intended to become part of it, against sudden accidental physical loss during construction. Greenwood General places it wholesale on an inland marine form for retail agents and brokers.

It typically covers direct physical loss to the project under construction — the structure, building materials on site awaiting installation, and often property in transit and temporary structures — from covered causes such as fire, wind, hail, theft, vandalism, and accidental damage. Optional enhancements can extend to soft costs, delay in completion, debris removal, and ordinance or law. Exact terms vary by form.

Builders risk generally excludes wear and tear, faulty workmanship or design, mechanical breakdown, and perils such as earthquake or flood unless added by endorsement. The contractor's own tools and mobile equipment are typically not covered unless contractors equipment coverage is added. Exclusions vary by form, so confirm the specifics on each account.

It isn't mandated by law, but lenders, project owners, and construction contracts almost always require it before work begins because it protects each party's insurable interest in the project. Check the contract to see who is required to carry the coverage and for what amount.

Whoever has an insurable interest in the project — most often the general contractor, the property owner, or the developer, depending on what the construction contract specifies. Brokers place the policy for whichever party is designated, frequently naming the other parties as additional insureds.

Yes. The program writes renovation and remodel projects, including interior remodels and tenant improvements, with existing-structure coverage available. Describe the scope of work and the values involved so underwriting can match the right terms to the project.

Existing structure coverage is available during renovation and remodel projects, protecting the building being worked on in addition to the new construction. It is underwritten based on the existing values and the scope of the renovation, so include those details in the submission.

Builders risk is written for the course of construction — typically project terms from six to twelve months under this program — and ends when the project is complete, accepted, or occupied. Extensions may be available if a project runs long, so flag the timeline up front.

Theft of covered building materials and property at the jobsite is generally a covered cause of loss, subject to policy terms and any jobsite security requirements. Theft of the contractor's own tools and equipment is a separate exposure that needs contractors equipment coverage.

Not by default. A builders risk policy covers the project — the structure and materials that become part of it — not the insured's own tools and mobile equipment. Contractors equipment is available as an optional enhancement under the program; add it when the insured needs their equipment covered.

Delay in completion is an optional enhancement that responds when a covered loss pushes back the project's completion date — covering resulting soft costs, business income, and rental value the insured loses because the project finished late. It is added by endorsement when the account needs it.

Builders risk accounts are underwritten individually, so turnaround depends on the project and the completeness of the file. A complete submission — application, project description, budget, timeline, and construction type — routes to the right terms fastest, with many straightforward projects quoted quickly. Submit a risk to get started.

Yes. Many brokers place builders risk alongside the contractor's general liability and, once the project is complete, transition the finished building to a commercial property or package policy — all of which can run through one Greenwood General wholesale relationship.