Protect the project, not just the liability exposure
A construction project can suffer physical damage even when nobody has established a liability claim. Builder’s risk, also called course-of-construction insurance, is intended to address covered property losses during construction or renovation. General liability addresses a different set of exposures. Neither policy label establishes what a particular loss will be paid.
In the October 16 Speaking of Insurance episode, Aaron Bollinger discusses project responsibility, materials, theft and changing construction schedules. This checklist turns those topics into a practical review file. It does not reproduce the episode’s statistics or treat its hypothetical examples as actual client outcomes.
Describe the whole job before comparing policies
Start with the property address, project type, scope of work, current stage, expected start and completion dates, and the parties involved. Explain whether this is new construction, an addition or work on an existing occupied building. Tell the insurer about work already underway rather than assuming a new policy will cover earlier events.
Provide the construction budget and explain how the requested insured value was calculated. Identify existing structures, new work, owner-supplied items and materials separately. Ask which property is included, which is excluded and whether the proposed limits reflect the actual project. A loan amount or purchase price is not a substitute for that review.
Assign responsibility and verify the insured interests
Read the construction agreement and financing requirements with the appropriate advisers. Determine who is responsible for arranging insurance, paying premiums, reporting changes and requesting an extension. Do not rely on the owner and contractor each assuming the other has purchased it.
Ask the broker to explain how the policy identifies the owner, contractor, lender and any other relevant interests. A certificate or a conversation is not a substitute for checking the issued coverage and endorsements. Refer questions about contractual obligations to a qualified legal adviser.
Ask what happens to materials and equipment
List materials at the job site, stored elsewhere or moving between locations. Record who owns them and when responsibility transfers. Ask how the actual policy addresses those locations, transit, theft, limits, deductibles and security conditions. Do not assume one covered location means every warehouse or delivery is insured.
Separate items intended to become part of the building from portable tools and contractors’ equipment. The insurance review may involve different property or equipment coverage. Identify those items explicitly instead of treating every object on the site as part of the builder’s risk policy.
Review loss causes and conditions in writing
Have the insurer or broker identify the covered causes of loss and relevant exclusions. Ask specifically about the project’s fire, wind, theft, flood and earthquake questions without assuming every builder’s risk form treats them alike. Review any restrictions concerning existing property, workmanship or the stage of construction in the actual offer.
Keep inventories, delivery records and appropriate photographs. Discuss site access, keys, storage and other security requirements with the insurer. Good security can support loss prevention and documentation, but it does not establish insurance coverage or guarantee a premium reduction.
Plan for schedule changes and completion
Ask when coverage starts and what events end it under the issued terms. Discuss completion, occupancy, handover and any change in project use before relying on the policy through those transitions. If the schedule slips, ask about an extension before the existing coverage ends; do not assume it renews automatically.
Separate repair costs from delay-related expenses. Ask whether any proposed soft-cost or delay coverage applies, what triggers it and which limits or conditions govern it. A builder’s risk policy should not be treated as a guarantee that the entire construction budget or every delay will be reimbursed.
Bring one clear project file to the review
Gather the scope and budget, construction agreement, lender requirements, current insurance documents, project dates, materials locations and unresolved questions. Record who will notify the insurer about changes and keep written responses with the project file.
For a broader business-coverage review, read the California contractor insurance guide. To discuss the project with Bollinsure, use Get quoted, call 562-268-9355 or email quotes@bollinsure.com. Start with the project type and timeline; do not email banking details, government identifiers or private worker records.
General educational information, not a coverage determination, legal advice or a promise of claim payment. Coverage depends on the issued policy, endorsements, underwriting and project facts. This guide, a quote or a conversation does not bind coverage.