Commercial Builders Risk Insurance provides coverage for properties under construction or renovation when those items sustain physical loss or damage from a covered cause.
Builder’s risk insurance usually indemnifies against losses due to fire, vandalism, lightning, wind, and similar forces. It usually does not cover earthquake, flood, acts of war, or intentional acts of the owner. Coverage is typically during construction period only, and covers the increase value of the project during the various stages of construction. This coverage is intended to terminate when the work has been completed and the property is ready for use or occupancy.
Builders risk policies typically do not cover any general liability type losses at the building site.