Contractors at an electrical box

Builder’s Risk 101

An Introduction to Builder’s Risk


Builder’s Risk Insurance is often overlooked as an unnecessary expense. It protects construction companies, contractors, and subcontractors from losses to materials and fixtures during construction and often during transit and storage. It covers losses that may not be covered under a general liability insurance plan and might just be the most valuable short-term insurance you aren’t using.

Builder’s Risk generally covers loss and damages covered by theft, vandalism, fire, weather conditions and other unanticipated risks. It may also cover costs related to delayed project completion, cleaning, and shifts in construction to meet environmental compliance demands. It’s a “one-shot” insurance that, if written correctly, will protect you against several unpredictable (and all too common) risks on the construction site.

It is important to work with an insurance agent you trust when building a Builder’s Risk plan. An agent who takes the time to assess your personal needs and risk will make sure your policy lines up accurately with your Project Start Time (it’s crucial your project starts within 30 days of the policy effective date), Policy Period, Insurance-to-Replacement Cost, and Replacement Cost Coverage versus Actual Cash Value. Your agent will also ensure you have the correct liability policies in place to establish the best all-around coverage.

At Lathrop Insurance, our team uses special programs created specifically for Construction Companies and Contractors to deliver the best coverage and lowest premiums. Our dynamic team of coastal insurance experts provides the best coverage for Workers’ Compensation, Commercial Liability, General Liability, Auto, Equipment, Property Insurance and Builders’ Risk, all to make sure your team and your project are covered by a comprehensive, custom-tailored policy that meets your needs.

For over 80 years, Lathrop Insurance has kept property owners, construction companies and independent contractors covered, helping navigate an insurance world more complicated than ever before. To learn more about builder’s risk or see how we can help provide you a Better Insurance, reach out for a free review of your current policy and assessment of your comprehensive insurance needs. |

401-596-2525 | 85A Beach Street, Westerly, RI 02891


Related Posts