Builders Risk Insurance

Journal of Insurance and Indemnity Law - Vol.6 No.2, April 2013

2 Pages Posted: 10 Apr 2013

Date Written: April 5, 2013


Builders Risk Insurance is a form of property insurance that covers property owners and builders for projects under construction. The term "builder" is misleading because insureds can include not only the general contractor performing the work but also the owner, subcontractor, lending institution and others. Unlike commercial general liability policies, builders risk policies typically include all project participants as insureds who have an insurable interest in the project.

Builders risk provides coverage on an "all risk" basis for accidental losses, damage or destruction of property such as fire, theft, vandalism, malicious mischief, explosion, water damage, electical breakdown and collapse for which the insured has an insurable interest.

This policy provides coverage in 2 basic forms:"all risk or "named peril." A "named peril" policy insures against direct physical loss or damage to covered property or to insured property where the loss is covered by any of the specifically named perils or causes of loss.

Coverage exists during the construction period only and is intended to terminate when the work has been completed and the property is ready for use or occupancy.

Keywords: Builders Risk Insurance, Construction Insurance, Property Insurance, Casualty Insurance

Suggested Citation

Johnson, James A., Builders Risk Insurance (April 5, 2013). Journal of Insurance and Indemnity Law - Vol.6 No.2, April 2013, Available at SSRN:

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