Builders Risk Insurance: What Contractors Often Miss

Most contractors carry General Liability. Far fewer carry Builders Risk. That gap is where projects get destroyed financially.

What Is Builders Risk?

Builders Risk insurance covers buildings and structures under construction. It protects the project itself — materials, fixtures, and equipment on-site — against fire, theft, vandalism, wind, and certain weather events.

What GL Does Not Cover

Your General Liability policy protects against third-party injury and property damage. It does not cover the structure you are building if it burns down, gets vandalized, or is damaged by a storm before completion.

Who Needs It?

Any contractor, developer, or property owner with an active construction or major renovation project. If money is being spent on a structure that does not yet have a Certificate of Occupancy, Builders Risk should be in place.

When Does Coverage Start and End?

Coverage begins when construction starts and ends when the project is complete, the building is occupied, or the policy expires — whichever comes first.

Common Mistakes

Assuming the property owner has it (often they do not). Not including materials stored off-site. Letting coverage lapse before final inspection. Not covering soft costs like architect fees and permits.

In Florida's construction market, where timelines are long and weather risk is real, Builders Risk is not optional. It is the policy that protects the project.