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A building under construction is a common target for theft. The financial cost of equipment theft varies from $300 million to $1 billion yearly. Once you include losses resulting from the theft of lumber, tools and building supplies, the costs are much higher. So how do you protect yourself or your business from the financial implications?

Theft within the construction site is often a crime of opportunity, with the exception of heavy machinery, which requires planning.  Increasing security measures is a great step. But, it will not cover you from financial loss after theft. Builder’s Risk Insurance will protect your finances and help keep your project running.

What Is Builder’s Risk Insurance? 

Builders Risk insurance is property insurance that provides coverage for buildings under construction. One of its key benefits is that your policy provides coverage against theft.  The insurance company will pay for the cost of replacement of stolen materials or equipment. There is often a lot of confusion on who should take out the policy. In this article we take a look at 5 stakeholders whose interests are covered.

Who Is Covered On A Builder’s Risk Policy?


  •  The contractors 


The construction industry operates on thin margins. It’s therefore important to get coverage that protects you from losing profit. A building under construction is easy to access during the night or the weekend. It is, therefore, no surprise that you will find missing tools, equipment and fixtures.

Once you make a claim your insurance company will cover the costs of replacing missing items. This saves you money and allows you to get back to work as soon as possible.


  • The developers


As a developer, you are making a large investment to the construction project. You, therefore, have a lot to lose if your equipment is stolen. Builder’s Risk insurance helps pay for any losses resulting from criminal activity.

Builder’s Risk coverage includes equipment that has been installed prior to or during construction. This policy should be taken out especially if you are setting up in a high-risk location.


  • Home and property owners


Construction or renovation projects in residential areas pose a threat to both homeowners and property owners. Residents get used to seeing strangers.  This provides the perfect mask for thieves.

Intruders than come and go as they please. This poses a risk to property in show houses and occupied homes.


  • Lenders funding a building under construction


In many instances, a lender will require insurance coverage before a loan is funded. It helps safeguard their investment in case anything goes wrong. Theft is one such case.

The coverage will name the lender as an additional insured in case of a loss.


  • The builders


If you run a roofing or handyman business, you understand how important it is to insure your tools of trade. It is easy to lose track of your items in a building under construction. 

Builder’s Risk insurance is a blessing for builders. The coverage includes loss of equipment on site and in transit. Given the cost or specialized equipment, insurance is important.

Insurance For A Building Under Construction 

It’s clear that a building under construction involves a number of stake holders. To keep your business afloat you need to have a proper insurance policy in place.  We are experts in Construction Insurance. Call Contractors Liability on 888-676-0923 and protect your business from loss.