Builders risk and course of construction insurance are two names given to the same type of insurance policy. Even though it may seem like insurance agents created this terminology just to confuse people, there is actually a good reason that people refer to the coverage by two different names. Here is a description of course of construction insurance vs. builders risk and an explanation of why each term accurately describes the benefits of carrying this type of policy.

Course of Construction

Course of construction is an apt name for an insurance policy that protects a new building throughout the period when builders are creating it. This type of policy covers losses from the following events:

  • Fire
  • High winds
  • Hail
  • Lightning strikes
  • Theft
  • Vandalism
  • Car crashes
  • Explosions

Builders Risk

Builders risk is also a good name for this coverage because it is the builder of the property who assumes all the risks during construction. The company must mitigate losses to its investments in tools, building materials, and other equipment in order to stay in business.

Course of construction and builders risk are both appropriate names. No matter which name is most popular in the region where you live, this type of policy is a smart investment for a construction company to make.

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