Why Builders Risk Insurance Is Non-Negotiable for Your Construction Project
Construction comes with risk. Delays, damage, and theft are more common than most builders care to admit—and when they happen, they hit your budget hard. Builders Risk Insurance helps you stay on track by covering what matters most during active construction.
This isn’t just a policy—it’s a core piece of your risk management strategy. Here’s why:
1. Protects Property Under Construction
Whether you’re building a duplex or a downtown high-rise, this policy protects structures, building materials, and fixtures against damage from fire, wind, vandalism, and more—until project completion.
2. Covers On-Site and In-Transit Materials
Coverage doesn’t stop at the site fence. Materials stored off-site or in transit are typically included, so you’re covered if they’re damaged before installation.
3. Required by Lenders, Owners, and Municipalities
Most project funders and municipalities won’t greenlight a build without proof of Builders Risk coverage. It’s often a legal or financial requirement—and missing it can delay permits or draw payments.
4. Reduces Financial Exposure from Delays
Storm damage, fire, or theft can stall work for weeks. Builders Risk helps fund repairs and replacements, preventing the kind of cashflow hit that can jeopardize a project.
5. Protects Against Common Job Site Theft
Tool and material theft has spiked across Canadian construction sites. Copper, HVAC units, even lumber—gone. This coverage helps you replace stolen goods fast and stay on schedule.
6. Flexible Terms That Match Your Build
Coverage can be customized to match your build timeline—whether it’s a 3-month reno or a 2-year multi-phase project. Monthly extensions are available if your schedule shifts.
7. Essential for Managing Subcontractor Risk
Subtrades come and go. This policy ensures that your project, not just the subs, has a centralized layer of protection—especially important when there’s dispute or damage.
8. Integrated into Commercial Risk Strategies
Builders Risk is often packaged with Commercial General Liability (CGL), Contractors Equipment Insurance, and Wrap-Up policies. A bundled approach streamlines claims and lowers premiums.
9. Improves Your Insurance Profile
Contractors who carry Builders Risk demonstrate operational maturity and proactive risk management. That can lead to better underwriting and stronger pricing on other lines of business.
10. Enables Confident Bidding on Larger Projects
Coverage allows you to bid on higher-value jobs without worrying if you’re exposed. It gives confidence to project owners—and to your own team.
Let’s Build Smarter, Together
Whether you’re managing a single residential infill or leading a commercial build with multiple crews, Builders Risk Insurance helps keep your project protected—and profitable.
