Builder’s Risk, also known as Course of Construction Insurance, insures buildings or projects under construction from the costs of repair or replacements in the event of unique risks, such as a spark from a piece of equipment igniting construction material and resulting in fire damage to the building or project. It’s intended to safeguard owners and contractors from the substantial impact of fires, floods, vandalism, theft, and other incidents that could happen to a construction project.

This insurance product can be purchased by various interested parties, such as the owner of the property, the general contractor or the project manager. With a Builder’s Risk policy, owners are assured their contractors will have the funds to rebuild or repair damages in the event of a loss, and contractors are assured they will have the costs available to start over in the event of an incident.