Builder’s Risk Coverage
Comprehensive Protection for Your Construction Projects
Crescenta Valley Insurance
National Builder’s Risk Statistics
Construction Industry Impact
4% of US GDP contributed by construction industry
45% of construction projects worldwide affected by weather delays
Average Claim Values
$30,000 average equipment theft claim
$165,000+ for major equipment losses
$2.6 trillion in weather-related construction damages since 1980
Policy Costs
1-5% of total construction cost
$1,000-$5,000 average annual premium
15-45% premium increases in recent years
What is Builder’s Risk Coverage?
Builder’s Risk Coverage, also known as Course of Construction Insurance, is a specialized property insurance policy that protects buildings, structures, materials, and equipment during construction, renovation, or installation projects.
Why Builder’s Risk Coverage is Essential
- Construction sites face unique risks not covered by standard insurance
- Materials and equipment are vulnerable during transport and storage
- Projects can face costly delays from weather, theft, or accidents
- Lenders typically require coverage before releasing construction funds
- Protects all stakeholders: owners, contractors, subcontractors, and lenders
Ground-Up Construction vs Construction in Progress
Ground-Up Construction
New construction projects starting from the foundation up. These projects typically start with minimal risk that increases as construction progresses. Often the most cost-effective to insure in early stages.
Construction in Progress
Ongoing construction work on existing structures or renovation projects. These often carry higher risks due to existing structure complications, structural changes, and integration challenges.
Builder’s Risk vs General Liability Insurance
These two types of insurance serve completely different purposes and are both essential for construction projects:
Builder’s Risk Coverage
Protects: Property, materials, and equipment
Covers:
- Fire, theft, vandalism, wind damage
- Materials in transit or storage
- Temporary structures and scaffolding
- Equipment breakdown
- Soft costs (permits, loan interest)
Duration: During construction only
General Liability Insurance
Protects: Against third-party claims
Covers:
- Bodily injury to third parties
- Property damage to others
- Personal injury claims
- Professional liability
- Legal defense costs
Duration: Ongoing business operations
Industry-Specific Builder’s Risk Requirements
Oil Drilling Contractors
Required Coverage:
- Specialized pollution liability coverage
- Control of well insurance
- Equipment breakdown protection
- Environmental liability coverage
- Riggers liability insurance
Mining Operations
Required Coverage:
- Mining construction insurance
- Equipment and machinery breakdown
- Environmental liability protection
- Business interruption coverage
- Professional liability for consultants
Storage Tank Operators
Required Coverage:
- Underground storage tank (UST) insurance
- Storage tank liability (STL) coverage
- Pollution liability protection
- EPA financial responsibility compliance
- Corrective action cost coverage
General Contractors
Required Coverage:
- All-risk property coverage
- Materials and equipment protection
- Soft costs coverage
- Debris removal coverage
- Professional liability when applicable
Solar Farm Operations
Required Coverage:
- Builders All-Risk (BAR) policies
- Weather-related damage protection
- Equipment breakdown coverage
- Delay in start-up coverage
- Specialized testing coverage
Wind Farm Operations
Required Coverage:
- Turbine and equipment coverage
- Weather and wind damage protection
- Business interruption insurance
- Construction phase coverage
- Production tax credit protection
Builder’s Risk Fun Facts! 🏗️
🔥 Historical Origins
Builder’s risk insurance evolved from fire insurance after the Great Fire of London in 1666, which destroyed over 13,000 homes and led to the first fire insurance company!
⚡ Most Common Claims
Wind damage accounts for 32.6% of all construction-related property claims, making it the #1 cause of builder’s risk losses nationwide.
🏠 Coverage Flexibility
Builder’s risk policies can cover everything from a $50,000 home renovation to billion-dollar infrastructure projects like airports and power plants!
📱 Modern Innovation
Today’s builder’s risk policies can include coverage for high-tech equipment like drones used for construction monitoring and 3D printing materials!
🌍 Global Reach
Lloyd’s of London, famous for insuring unusual risks, has covered everything from celebrity body parts to space missions – and yes, that includes construction in space!
🎯 Perfect Timing
Builder’s risk is one of the few insurance types where you can’t get coverage once work begins – it must be secured before the first shovel hits the ground!
💰 Green Energy Boom
Renewable energy construction insurance is projected to become a billion-dollar market as solar and wind projects multiply across the nation!
⛈️ Weather Warriors
In 2023 alone, the US experienced 28 weather events exceeding $1 billion in damages each – making builder’s risk coverage more crucial than ever!
Protect Your Construction Investment Today
Don’t let unforeseen events derail your construction project. Crescenta Valley Insurance specializes in comprehensive Builder’s Risk Coverage tailored to your specific needs.
✓ Expert Guidance
Specialized knowledge in construction insurance
✓ Custom Solutions
Policies tailored to your project type
✓ Competitive Rates
Best coverage at the best price
✓ Fast Claims
Quick resolution to keep projects moving
Contact Crescenta Valley Insurance Today
Get your Builder’s Risk quote and protect your construction investment
