Property insurance offers protection for a building once it’s operational.A builder’s risk policy insures against physical loss or damage to a building during construction.A builder’s risk policy covers both hard and soft losses for contractors.

Hard costs include the physical property itself and building materials.Soft costs may include construction delay fees, interest on construction loans, additional architecture/engineering fees due to the delay, project management expenses and loss of income delays.Fire Buildings under construction have a higher fire potential due to unprotected structural components, floor and wall openings, fire loading from construction materials and debris, and lack of fire suppression systems.

Control Measures Water Damage Water damage may occur from weather-related events, leaking pipes or service connections.If not detected early, damage may impact multiple floors and areas causing significant damage to interior finishes.Control Measures Theft and Vandalism More than 11,000 thefts occurred on construction sites in 2021.[1] Copper piping, HVAC equipment, and steel waiting to be installed on a construction site are common targets for criminals.

Increasingly, equipment and materials already installed in a building may also be a target for theft.Control Measures Wind During construction, the building exterior is particularly susceptible to wind loss.Damage to partially installed roofing and siding is an increased risk and unsecured lightweight building materials may also suffer damage.

Control Measures Collapse The potential risk for collapse is present in nearly every construction project.New construction framing (steel or wood), poured concrete building systems, masonry wall construction or concrete tilt panel wall construction may all be subject to collapse without engineered controls.Control Measures Have a question on how to mitigate risk? Email [email protected] for a chance to see your question answered in a future blog.

[1] Statista “Number of burglaries in the United States in 2021, by location,” June 2, 2023.