At Fragos Insurance Group, we understand the risks that come with building from the ground up. From weather delays to theft, a lot can go wrong before a project ever sees completion. That’s where builder’s risk insurance—also known as course of construction insurance—comes in. This essential coverage protects your investment during the most vulnerable phase of the project: while it’s under construction.
Whether you’re developing a brand-new structure or renovating an existing one, builder’s risk insurance is designed to safeguard against unexpected events that could derail your schedule—and your budget.
Why Builder’s Risk Insurance Matters
1. Protection Against Damage and Loss
Construction sites face daily exposure to risks—from storms and fires to theft and vandalism. Builder’s risk insurance helps cover the cost of repairing or replacing damaged property, materials, and equipment. Considering the rising frequency of billion-dollar weather events in the U.S., this coverage is more crucial than ever.
It’s not just about natural disasters. Equipment theft is another major threat. The average loss from a single theft incident is around $30,000, and it can be much higher depending on the machinery involved. Without proper insurance, one event like this can stall a project indefinitely.
2. Financial Risk Control
Construction projects are complex and capital-intensive. Without insurance, any setback could mean massive out-of-pocket expenses or long-term debt. Builder’s risk insurance helps ensure that the property owner, general contractor, subcontractors, and even lenders are protected from financial fallout if something goes wrong.
Having this coverage also sends a strong message to stakeholders: that you’re serious about risk management. This builds confidence, attracts more reliable investors, and keeps your pipeline of projects flowing.
3. Legal Protection and Dispute Coverage
Legal disputes in construction are common. Delays, contract issues, or unexpected cost overruns can quickly lead to claims. A solid builder’s risk policy provides a financial buffer when facing legal action—whether it’s a claim over damage, delays, or increased financing costs. In today’s high-cost construction environment, this type of protection is more than just smart—it’s necessary.
4. Keeping Projects Moving Forward
Insurance can’t prevent every setback, but it can ensure that you’re not sidelined when one happens. With the right policy in place, you’ll be in a stronger position to bounce back quickly, finish the project on time, and take on new work with confidence.
What Does Builder’s Risk Insurance Cover?
A well-designed policy from Fragos Insurance Group typically includes protection for:
- Fire, lightning, and explosions
- Theft and vandalism
- Windstorm and hail damage
- Arson
- Collapse
- Water damage from sewer backup or sump failure
- Materials and equipment in transit
- Debris removal
- Construction materials stored on-site
Optional add-ons can cover flood, earthquake, and other region-specific risks. We also help cover indirect financial impacts like project delays or lost income resulting from covered incidents.
However, it’s important to understand what builder’s risk doesn’t cover. Exclusions often include:
- Normal wear and tear
- Poor workmanship
- Faulty materials
- Acts of terrorism
- Employee dishonesty
- Mechanical breakdowns
Our job is to help you understand these boundaries—and fill any gaps with the right supplemental coverage.
Who Needs Builder’s Risk Insurance?
If you’re involved in construction in any capacity, builder’s risk insurance is for you. This includes:
- Property developers
- General contractors
- Subcontractors
- School districts and municipalities
- Retail and commercial property owners
Fragos Insurance Group works with clients of all sizes to build smart insurance solutions that match the scope and complexity of their projects.
How Much Does Builder’s Risk Insurance Cost?
Pricing varies based on several factors:
- Project size and total value
- Construction type (ground-up build, renovation, etc.)
- Location and regional weather risks
- Project duration
- Coverage limits and optional endorsements
At Fragos Insurance Group, we take the time to analyze your specific risks and build a policy that gives you peace of mind—without straining your budget.
Choosing the Right Insurance Partner
Builder’s risk insurance is only as good as the team behind it. That’s why it’s critical to work with a firm that understands construction and is dedicated to protecting your work and your reputation.
Ask yourself:
- What’s the full scope of my project?
- Where are my biggest vulnerabilities?
- Can my business handle delays or equipment loss out of pocket?
- Is the job site in a high-risk area for storms, theft, or vandalism?
Fragos Insurance Group has decades of experience helping construction professionals answer these questions and more. We also stay ahead of the curve by incorporating innovative technology, such as water-sensing systems and smart monitoring tools, to help you mitigate losses before they happen.
Build with Confidence—We’ll Handle the Risk
At Fragos Insurance Group, construction insurance isn’t just something we offer—it’s what we specialize in. We know the unique pressures and pitfalls of your industry, and we’re here to help protect every structure you build.
Ready to learn more? Connect with one of our construction insurance specialists today and let’s build a safer, stronger foundation for your business.