When planning a construction project, whether a new home, a commercial building, or a renovation, it’s essential to consider the risks associated with the project. Builder’s Risk Insurance or Course of Construction Insurance helps protect you financially if something unexpected happens during construction. Here, we’ll discuss the main benefits of a Builder’s Risk Insurance policy.

How Builder’s Risk Insurance Works

Builder’s risk insurance is designed to cover the financial losses that may occur during the construction or renovation of a building or structure. It is significant to note that this type of builder’s risk insurance does not cover any liability incurred during the construction process, such as damage to third-party property or bodily injury to workers or passersby.

The coverage provided by builder’s risk insurance typically includes the following:

  • The structure itself, including any materials used in the construction process that are onsite
  • Temporary structures, such as scaffolding, used in the construction process
  • Any damage caused by vandalism or theft
  • Loss of materials or supplies due to fire, wind, or other natural disasters
  • Loss of income due to the interruption of construction caused by a covered event
  • Additional expenses incurred due to the interruption of structure caused by a covered event

Benefits of Builder’s Risk Insurance Policy

1. Protection Against Theft

The theft of materials and equipment from construction sites is a common occurrence. It can be devastating to replace those materials and equipment, especially if they are expensive or hard to find. Builder’s Risk Insurance can help protect you financially in the event of theft and can also help cover the cost of security measures that can help reduce the risk of theft.

2. Protection Against Natural Disasters

Natural disasters such as floods, earthquakes, and fires can cause significant damage to a construction site and the materials and equipment stored there. Builder’s Risk Insurance can help cover the costs of damage caused by these disasters, allowing you to continue with the project without having to worry about the financial repercussions.

3. Protection Against Accidents

Accidents can happen at construction sites, from slips and falls to damage caused by machinery or tools. Builder’s Risk Insurance can help cover accident costs, protecting you from financial liability.

Who Should Consider Builder’s Risk Insurance Policy?

This type of insurance is essential for any contractor or builder; lenders, financiers, and the local government generally require it.

Builder’s risk insurance is an excellent option for building new construction or refurbishing an existing one. It is especially beneficial for those buildings for commercial purposes, such as a hotel, office building, or apartment complex.

Builders’ risk insurance is also beneficial for leasing or renting a property under construction or renovation.


A Builder’s Risk Insurance Policy is an invaluable resource for businesses involved in construction projects. It can provide financial protection in the event of loss or damage caused by any factors related to the construction process. Companies can find the right approach to suit their needs and budget by researching and comparing different policies. 

Pascal Burke Insurance Brokerage Inc. is an excellent option for contractors looking for builder’s risk insurance in Louisiana and across the US. Our team of highly experienced brokers specializes in a range of policies, from general cases to specialty contractors. We understand the complexities of the insurance industry and strive to provide the best coverage for our clients. If you are looking for insurance coverage, contact us today.