Who Buys Builders Risk Insurance?
The owner or contractor may arrange the policy, depending on the construction contract; the policy must separately identify who is insured.
The construction agreement usually states which project party must arrange insurance, but the policy controls who qualifies as an insured. An owner may purchase coverage for the project, or a contractor may be required to place it under the agreement. The label “builders risk” does not settle that allocation.
The specimen ISO form defines “you” as the named insured shown in its declarations. A party that helps pay for a policy, owns part of the project, or performs work does not automatically become the named insured. Other forms may include additional insureds or other interests by endorsement.
Read the contract’s insurance clause and compare it with the proposed declarations and endorsements. Confirm the buyer, named insureds, lender interests, who bears deductibles, project value, and the dates insurance must apply. If a contract requires an additional insured or loss-payee status, obtain the actual endorsement rather than relying only on a certificate.
Related Coverage
Sources
- Glossary of Insurance Terms. National Association of Insurance Commissioners; Builders’ Risk Policies. Accessed 2026-09-25.
- Commercial Insurance Guide. California Department of Insurance; Form 700, revised June 14, 2024: Commercial Property > Coverage Forms and Endorsements > Builder’s Risk; Inland Marine; How Can I Purchase Commercial Insurance?; What Should I Expect from a Broker-Agent? Accessed 2026-09-25.
- Builders Risk Coverage Form. Insurance Services Office, Inc.; hosted by Touchpoint Markets; IH 00 70 05 17, copyright 2017 (illustrative specimen): A.1–3, printed pp. 1–2; B, printed pp. 9–11; C–E, printed p. 12. Accessed 2026-09-25.
