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

The terms can refer to similar property protection while a project is being built, but they do not guarantee matching coverage. The NAIC defines builders risk around buildings under construction; compare the actual forms for materials, existing structures, limits, occupancy, and when coverage ends before choosing.

One form may treat materials, existing structures, temporary storage, transit, occupancy, or project completion differently from another. The specimen ISO builders risk form names a specific project and contains its own property definitions, exclusions, and cessation rules. Another product using “course of construction” may use distinct wording.

Ask for each complete coverage form and endorsement schedule. Compare insured parties, project locations, property limits, valuation, covered causes, deductibles, completed-work and occupancy triggers, and any extensions. Resolve differences in writing before choosing between the proposals; a shared label is not evidence that the protections match.