Builders Risk Policy: One Size Does Not Fit All

Before starting your next construction project this spring, take a moment to review your builders risk insurance policy. The coverage that worked for your last job may not fully protect your next one — and overlooking small changes could leave you exposed to major losses.

At Barnum Property & Casualty, we understand that every project is unique. From scope and size to location and risk level, no two builds are the same — and your policy shouldn’t be either.

Why Every Project Needs a Coverage Review

Builders risk insurance is designed to protect buildings and materials during construction or renovation. However, not all projects carry the same risks. New exposures can arise as your work evolves — and if your policy isn’t updated, you may find yourself uncovered when it matters most.

Consider these common scenarios:

• Temporary structures: Does your current policy include coverage for fencing, scaffolding, or storage units added to the site?

• Testing exclusions: Are there limitations for hot or cold testing once systems are installed?

• Equipment failures: Does your policy include protection for power surges, boiler explosions, or mechanical breakdowns during testing phases?

  
  

Each of these factors can affect whether your builders risk policy fully protects your project.

Overlooked Coverage Gaps to Watch

One often-missed detail in builders risk policies lies within the Additional Coverages Limitations section — specifically, “occupancy and use.”

Coverage may end when the project is occupied or partially in use, even if construction isn’t fully complete. If your team or client begins using the space before final completion, your coverage could automatically stop without notice.

The solution? A Permission to Occupy endorsement, which allows continued protection through the transition period. Without this adjustment, you could face an unexpected coverage gap right before project handoff.

Protect Every Phase of the Project

No two construction jobs are the same — and neither are their insurance needs. Regularly reviewing your builders risk policy ensures your coverage grows and adapts with each new project.

Our team at Barnum Property & Casualty is here to help you identify potential exposures, review policy exclusions, and customize protection that fits your exact scope of work.

Let’s Make Sure You’re Covered

Before breaking ground on your next project, contact Barnum Property & Casualty for a quick policy review. Together, we’ll ensure your builders risk coverage is as strong and adaptable as the structures you build.