Has your roofing contractor Insurance company told you about Builder’s Risk? If they haven’t ,it could be because you’ve never been in the position to need it. Or it could be because the insurance company does not specialize in contractor insurance so is not set up to advise on Builder’s Risk coverage. On the other hand, you may have heard of Builder’s Risk but never thought to ask whether it could benefit you.

So let’s look at what you might not know about Builder’s Risk.



8 Things you probably don’t know about Builder’s Risk

1. Builder’s Risk is project-specific

This coverage is designed to protect buildings and structures that are under construction. Coverage is project-specific. It includes ground-up construction, or structures being remodeled or renovated.


2. Builder’s Risk has a lifespan

The clue is in the name. Builder’s Risk is also called course of construction insurance. A policy lasts for the duration of that project. Usually this period is 6 or 12 months. However, it can be renewed as long as there have been no claims.


3. Builder’s Risk is flexible

If your project becomes bigger or more costly, can you increase coverage?  Yes! It’s as easy as speaking with an insurance agent at Farmer Brown.


4. Builder’s Risk coverage is not liability coverage  

Builders Risk is only property coverage. This is protection for damage or loss to your property or the structure you are building. But it does not cover third-party claims. These are covered by your General Liability roofing contractor insurance.


5. Builder’s Risk overs your project

Liability Insurance protects against property damage claims brought by a third-party. For example, damage to a client’s property by falling equipment or roofing materials. Builder’s Risk protects against financial loss due to damage to the actual property. For instance, this can include the cost of repairing damage to the structure as result of vandalism.


6. Builder’s Risk is not for all contractors

Course of Construction Insurance is only for those roofing company business owners who would like to protect against the risks of losing project profits. Financial loss in the event of theft of equipment or building materials, or damage by fire or vandalism


7. Builder’s Risk is worth the investment

The cost of Builder’s Risk Insurance ranges anywhere from 1% to 5% of the total construction costs. The exact cost depends on the length of the project, the geographic location of the project, the type of construction, any exclusions to the policy, and the cost of the project.  The right valuation for the project is extremely important.


8. Builder’s Risk is not one size fits all

As with all your roofing contractor insurance policies, Builder’s Risk should be customized to fit your needs. Every roofing project is different, and has different risks.  So for example, there is a special % deductible for any claim resulting tornadoes in coastal states. It is important to have your roofing contractor insurance company include the exclusions that your project requires.


So, did your roofing contractor insurance company tell you all this?

It is advised that you assess your roofing contractor insurance regularly. For example, your business may have grown. Besides this, the types of projects may have changed. Your insurance needs may be different than even 6-months ago. For free advice from contractor insurance experts, contact Farmer Brown today. We can help. Call (888) 973-0016

Written by: John Brown
John has more than 25 years of experience in the insurance industry. He grew from a star insurance producer to owning one of the largest agencies in the country; he's a reference regarding contractor's insurance, commercial insurance, and builders' risk insurance.