Also known as course of construction, commercial builder’s risk is a type of property insurance that covers buildings or construction areas during the period of construction. This policy is designed to protect construction sites against loss and damage. Commercial builder’s risk is specifically tailored to cover commercial construction projects, including new construction, remodeling, and installation.
Coverage generally includes the buildings and structures under construction as well as materials and equipment that are onsite or in transit to the job site. A builder’s risk policy will generally take the unique nature of the construction site into account, so coverage may look different policy to policy. Coverage usually ends when the work is complete.
Since it protects your investments, commercial builder’s risk insurance offers coverage for those with a financial interest in a commercial construction project. Contractors and subcontractors as well as stakeholders will benefit from the protection this policy offers.