Most construction contracts require project leaders to obtain builder’s risk insurance—in fact, it’s become standard practice within the industry over the years. However, the reality is that many owners and contractors fail to comply with this provision, and either do not obtain any builder’s risk coverage whatsoever or obtain coverage that is inadequate to protect the project and those involved in its construction.

The following article will explore the basic tenets of builder’s risk insurance and provide guidance for owners, contractors and attorneys tasked with procuring and evaluating such policies.

What Is builder’s Risk Insurance?