Builders Risk vs. Course of Construction: What's the Difference?

Builders Risk vs. Course of Construction: What's the Difference?

December 13, 2023

Builders Risk vs. Course of Construction: What's the Difference?

In the world of construction insurance, Builders Risk and Course of Construction policies are often mentioned, but what sets them apart? In this blog post, we'll break down the key differences between these two insurance types, helping you make informed decisions about which one suits your project best.

Builders Risk Insurance: Protecting the Project

Builders Risk Insurance is designed to safeguard your construction project against various risks and perils. It covers property damage during construction, including structural components, materials, equipment, and more. Builders Risk Insurance often includes soft costs coverage, which helps cover expenses like architectural and engineering fees, permits, and legal costs that may continue even if construction halts due to a covered loss.

Course of Construction Insurance: Coverage for Contractors

Course of Construction Insurance, also known as Contractor's All Risk Insurance (CAR), typically provides protection for contractors. It covers risks associated with the construction phase, including property damage and third-party liability. This policy is often tailored to the specific needs of contractors and may include coverage for tools, equipment, and liability protection.

Which One Is Right for Your Project?

The choice between Builders Risk and Course of Construction insurance depends on your role in the project. If you're the property owner, Builders Risk Insurance is likely the best fit. If you're a contractor, Course of Construction Insurance may be more suitable. However, these distinctions can vary based on project specifics, so consulting with an experienced insurance professional is crucial to ensure the right coverage.

About Craig Barbee, CEO of Barbee Jackson Insurance

Craig Barbee is the CEO of Barbee Jackson Insurance, a seasoned expert in the insurance industry. With a wealth of experience and a deep understanding of the unique insurance needs of construction projects, Craig is dedicated to helping clients protect their investments. When it comes to making insurance decisions, you can trust Barbee Jackson Insurance to provide tailored solutions for your project's success.

Understanding the difference between Builders Risk and Course of Construction insurance is essential for securing the right coverage for your project. Both policies offer crucial protections, but the choice depends on your role in the construction process. By consulting with an experienced insurance provider like Barbee Jackson Insurance, you can navigate these distinctions and ensure that your project is adequately covered.