Do Contractors Need a Builder’s Risk Policy? 

Contractors in California face numerous risks that can disrupt timelines and budgets. One way to safeguard your investment is through builder’s risk insurance. But is this coverage necessary for every contractor? Let’s explore when and why builder’s risk insurance can be a crucial component of your construction insurance policy.

What Is a Builders Risk Policy?

A builder’s risk policy is specialized property insurance that may cover buildings and structures under construction or renovation. It can help prevent financial losses from covered events, such as fire, vandalism, theft and certain natural disasters. It can also extend to on-site materials, equipment and supplies, as well as those in transit.

Is It Essential for Contractors?

Construction projects involve significant financial commitments and tight schedules. Without proper coverage, an incident can lead to costly delays or halt a project entirely. A builder’s risk policy can help contractors:

• Financially protect their investment in materials and labor
• Meet lender or project owner requirements
• Minimize financial losses from covered events
• Maintain project momentum after a loss

When Do Contractors Need a Builder’s Risk Policy?

While not legally required in California, builder’s risk insurance is often mandated by project owners, lenders or contract terms. It can be crucial for:

• New construction projects
• Major renovations or remodels
• Projects with valuable materials stored on-site
• Jobsites exposed to theft, fire or severe weather

Secure a Policy Today

SaveGuard Insurance helps California contractors secure builder’s risk insurance. Our team can assess your project and recommend suitable coverage. If you have any questions or would like to explore your options, contact our team today.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.