Course of Construction Vs. Builders Risk Insurance

Construction projects come with all kinds of risks. Luckily, course of construction insurance exists to help you manage these risks – and ALIGNED can help you find it. Keep reading to learn more about course of construction insurance, including how it can protect you and how it differs from builders risk insurance.  

What is course of construction insurance?

Course of construction insurance is a type of commercial property insurance that covers a building when that building is being constructed or under construction (including when it is undergoing renovation and repair). Course of construction insurance also goes by the name builders risk insurance; however, both insurance types are actually the same!

How does course of construction insurance work?

Since course of construction insurance covers buildings under construction, these policies usually begin before the first materials arrive on the job site and end once the project is complete. Depending on which insurance company you purchase course of construction/builder’s risk coverage from, insurance may be offered as a standalone construction policy or be added as an endorsement to an existing commercial insurance policy.

What does course of construction insurance cover? 

What exactly course of construction covers varies. It usually covers the structure under construction and any construction materials on-site against certain perils, like fire or theft. However, it can also include additional coverage like inland marine insurance to protect tools, equipment, or materials in transit.

A man sketching on construction paper.
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How does course of construction insurance differ from builders risk insurance? 

It doesn’t! Course of construction insurance is simply another name for builders risk insurance and vice versa. Both aim to protect a building under construction, often covering the structure itself, as well as any on-site materials waiting to be installed or transported. The fact of the matter is that some insurance companies prefer the name “course of construction,” while others use the name “builders risk.” But at the end of the day, they refer to the same policy and coverage.

Who purchases course of construction insurance?

Course of construction insurance can be purchased by anyone who has a financial stake in the construction project. Given this, builders risk insurance is typically purchased by general contractors, contractors, subcontractors, homeowners, commercial property owners, or property developers.

How much does builders risk insurance cost? 

The cost of builders risk insurance varies as it is dependent on many factors, including the value of the completed structure, methods used in construction, the timeline for the project, the scope of work, the amount of work, etc. To calculate the cost of course of construction insurance, an insurance company typically also considers factors like the cost of the materials, the labour used, the number of employees, the coverage, limits, and deductibles chosen.

Contact ALIGNED to learn more about course of construction and builders risk insurance

Still have questions about how course of construction insurance differs from builders risk insurance? Contact ALIGNED. Our team consists of commercial insurance experts, any of whom would be happy to explain how course of construction insurance works and can protect your construction or renovation project.

Click Here To Get A Quote or contact one of our business insurance experts for information or with any questions you may have.

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