How to Get Commercial Builder Risk Insurance

Commercial Builder’s risk insurance plan offer property owners a suitable option to protect their building from damages or any negligence. Choosing the right policy will ensure peace of mind, with you knowing that you will be covered against all potential risks.


  • 1

    Estimate project costs

    Your project costs will include the estimated sale price of the building after it has been completed and all the relevant expenditures you have incurred for raw materials, equipments etc. The total will help determine the builder’s risk policy. Land will be excluded from estimated expenses.

  • 2

    Determine the finishing and starting date

    You will define the period of completion in order to decide the duration of the policy. Some policies will kick in after 30% of the construction has been done.

  • 3

    Application form

    You will need to fill out an application form from the preferred insurer. Fill out the necessary details and take help from the customer service department if required.

  • 4

    Workers’ experience

    Most policies require you to fill the details of the workers who will be working on the site. They will at least need to have 2 years of relevant building experience in order to be considered as an insured person under the policy. In special cases, the experience must be more than 2 years.

  • 5

    Understanding the coverage

    Some policies will limit the coverage only to property damages while the building is under construction. You will be entitled to nothing if the building is affected by natural hazards such as flood etc. Therefore it is important to understand and choose the appropriate policy. You may be prompted to extend the coverage which will cover all high-risk costs.

    Moreover, if the workers are not covered as per the policy, ask whether you will need to purchase a specific coverage or extend the current one. Contact your insurance agent and ask if you will need to submit another application for protecting the labour class.

  • 6

    Consider additional coverage

    If you are constructing a building in a high risk area, there are other factors that you may need to take into consideration. Whether you want to include the boundary area in the policy, or protect visitors or spectators from getting hurt.

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