Best Builders Risk Insurance Companies: A Complete Guide for 2026
Last reviewed: June 2026
You are about to start a construction project worth $2 million. You need coverage that protects the structure, materials, and equipment while work is in progress. Without it, a single fire or theft can wipe out your profit.
A builder’s risk claim can cost tens of thousands of dollars per day of delay. Lenders may refuse to fund a job if you lack proper coverage. That risk makes choosing the right insurer a critical step.
This post shows how to compare builders risk carriers, lists the top companies as of 2026, and explains what coverage pieces you must check. You will learn how to read a quote, what limits are typical, and how to avoid common gaps.
This article provides educational information only and does not constitute financial or legal advice.
Key Takeaways
| Company | Standout Feature | Best For |
|---|---|---|
| Nationwide | Limits up to $10M, fast adjuster assignment | Projects needing high limits |
| The Hartford | Flexible commercial contractor coverage | General contractors |
| Zurich | Construction-focused program | Large construction projects |
| Travelers | Dedicated builders risk coverage | Contractors of various sizes |
| Chubb | Construction coverage program | Higher-value builds |
| Liberty Mutual | Contractor’s shield package | General contractors |
- Verify that the insurer is licensed in your state and offers a dedicated builders risk program
- Look for a minimum $1 million per-project limit and a 10 day waiting period for soft-cost coverage.
- Choose a carrier that includes debris removal, vandalism, and equipment breakdown in the base policy.
- Compare deductible options; a $5,000 deductible often balances cost and protection.
- Ask for a loss-run report from the insurer to see how they handled past construction claims.
- Keep documentation of all materials, contracts, and change orders to speed claim processing.
How Builders Risk Insurance Works
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Builders risk insurance covers property while it is being built, renovated, or repaired. The policy protects against fire, wind, lightning, theft, and vandalism. It also pays for soft costs such as architect fees, permits, and financing charges if a covered loss halts work.
The coverage period starts on the date the contractor takes possession of the site and ends when a certificate of occupancy is issued. Some policies allow extensions for change orders or schedule delays.
A typical builder’s risk policy includes:
- Coverage A: Building: The structure itself, measured by the completed-cost method.
- Coverage B: Materials and Supplies: Items stored on site, in transit, or at a temporary storage location.
- Coverage C: Equipment: Owned or rented tools, cranes, and scaffolding.
- Coverage D: Soft Costs: Legal fees, engineering reports, and loss of rental income.
If a loss occurs, the insurer pays the actual cash value or the replacement cost, depending on the contract terms. Replacement cost is preferred because it restores the project to its original condition without depreciation.
What to Look for in a Builders Risk Carrier
Not every insurer treats builders risk the same way. Some offer a generic property policy with a builders risk endorsement. Others have a stand-alone program designed for contractors. The latter usually provide faster claims handling and better limits for equipment.
When you evaluate a carrier, ask these questions:
- State Licensing: Confirm the insurer holds a license in the state where the project is located.
- Financial Strength: Check ratings from A.M. Best, Moody’s, or Standard & Poor’s. A rating of A- or higher indicates the ability to pay large claims.
- Limits and Sublimits: Verify the policy offers at least $1 million for the building and $250,000 for equipment. Look for sublimit waivers for high-value items.
- Deductible Flexibility: A $5,000 deductible is common, but some carriers allow $1,000 to $10,000 options. Choose the level that fits your cash flow.
- Claims Process: Ask how quickly an adjuster can be on site after a loss. Faster response reduces downtime.
- Endorsements: Ensure the policy can add coverage for scaffolding collapse, flood, or earthquake if your region requires it.
A carrier that scores well on these points will protect you from the most common construction setbacks.
Top Builders Risk Insurance Companies in 2026
The following companies consistently rank high for builders risk coverage. They meet the criteria above and have proven track records with contractors of various sizes.
1. Nationwide Builders Risk
Nationwide offers a dedicated builders risk program that starts at $500,000 and can be increased to $10 million. Their policies include debris removal, vandalism, and soft-cost coverage without extra endorsement fees. The deductible range is $2,500 to $10,000.
Nationwide’s claims team assigns a dedicated adjuster within 24 hours of a reported loss. The insurer holds an A+ rating from A.M. Best, indicating strong financial stability.
2. The Hartford Commercial Contractors
The Hartford provides a flexible builders risk product that allows per-project limits up to $15 million. Their standard policy covers equipment breakdown and includes an optional “green building” endorsement for projects seeking LEED certification.
The Hartford’s deductible choices start at $1,000. They have a B rating from Moody’s, which is adequate for most mid-size projects. Their loss-run reports show an average settlement time of 14 days.
3. Zurich Construction Insurance
Zurich specializes in large-scale commercial projects. Their builders risk policy offers a 10 day waiting period for soft-cost coverage, which can be reduced to 5 days with a premium surcharge. Limits for equipment can reach $5 million.
Zurich’s global network lets them handle claims on sites with multiple jurisdictions. They hold an AA rating from Standard & Poor’s. Their premium calculator is available online, giving contractors quick quotes.
4. Travelers Builders Risk
Travelers provides a straightforward policy with a $1 million building limit and a $500,000 equipment limit as baseline. They include coverage for temporary structures, such as site offices and fences, at no extra cost.
Travelers’ deductible options range from $3,000 to $15,000. Their claims portal allows contractors to upload photos and documents directly, speeding up the adjustment process. Travelers has an A rating from A.M. Best.
5. Chubb Construction Coverage
Chubb’s builders risk product is known for high limits and optional “delay in start-up” coverage, which pays for lost revenue if a covered loss pushes back the project start date. Limits can be tailored up to $20 million.
Chubb offers a $5,000 deductible as standard, with lower options for an additional premium. Their A+ rating from A.M. Best reflects strong claim-paying ability. Chubb’s adjusters are experienced in complex commercial builds.
6. Liberty Mutual Contractor’s Shield
Liberty Mutual’s policy includes a built-in “material theft from off-site storage” endorsement, useful for contractors who keep supplies at a warehouse. The base limit is $2 million for the building and $300,000 for equipment.
Deductibles start at $4,000. Liberty Mutual holds an A rating from Moody’s. Their online portal tracks claim status and provides real-time updates.
How to Get Accurate Quotes
Getting a reliable quote requires detailed project information. Prepare the following before you contact insurers:
- Project description: Square footage, type of construction, and expected completion date.
- Estimated cost: Break down hard costs (materials, labor) and soft costs (permits, design fees).
- Location: Address, zip code, and any known hazards (flood zone, high wind area).
- Contractor details: Name, licensing information, and loss history.
- Equipment list: Value of owned and rented tools, machinery, and vehicles.
Submit this data through the carrier’s online portal or via a broker. Request a “per-project” quote rather than a blanket policy, as limits and premiums vary with each job.
Managing Premium Costs
Builders risk premiums typically range from 0.5 % to 2 % of the total construction value. For a $2 million project, you might pay $10,000 to $40,000 per year. Several factors affect the rate:
- Risk exposure: Higher exposure to wind, flood, or crime raises the premium.
- Deductible choice: Raising the deductible by $1,000 can lower the premium by about 5 percent.
- Claims history: A clean loss-run report can earn a discount of up to 10 percent.
- Bundling: Adding general liability or workers’ compensation with the same carrier often yields a multi-policy discount.
Ask each insurer for a “loss-payback” option, which refunds a portion of the premium if no claim is filed during the policy term.
Common Gaps and How to Fill Them
Even a solid builders risk policy can leave holes. Review these areas carefully:
- Delay in Start-Up: Standard policies do not pay for lost rent or financing costs before construction begins. Add a delay endorsement if your lender requires it.
- Scaffolding Collapse: Some carriers treat scaffolding as equipment, others as a separate risk. Confirm coverage limits.
- Flood and Earthquake: Most policies exclude these perils. Purchase a separate flood or earthquake endorsement if the site is in a high-risk zone.
- Contractor’s Tools Off-Site: Coverage may stop once tools leave the construction site. Verify that off-site storage is covered.
- Design Errors: Errors or omissions by architects are not covered by builders risk. Maintain professional liability insurance for design professionals.
Addressing these gaps before work starts prevents surprise out-of-pocket expenses.
Steps to Secure Builders Risk Coverage
- Gather project data: Use a spreadsheet to list costs, equipment, and timelines.
- Check state licensing: Visit your state insurance department’s website to confirm the carrier’s license status.
- Request quotes: Submit the same data to at least three of the top carriers listed above.
- Compare limits, deductibles, and endorsements: Use a side-by-side table to see which policy offers the best value.
- Review the loss-run report: Ask the insurer for the contractor’s loss history for the past five years.
- Select and bind: Sign the policy before the first day of construction. Keep a digital copy in a secure folder.
- Notify lenders: Provide a certificate of insurance to any financing institution.
Following these steps reduces the chance of a coverage lapse and keeps the project on schedule.
Frequently Asked Questions
What is the typical deductible for builders risk insurance?
Deductibles usually range from $1,000 to $10,000. A $5,000 deductible balances affordable premiums with reasonable out-of-pocket exposure. Choose a lower deductible only if cash flow allows.
Can I use the same builders risk policy for multiple projects?
Most carriers issue a separate policy per project because limits and risks differ. Some insurers offer a “blanket” policy for a portfolio of jobs, but it often comes with higher premiums and stricter underwriting.
How does a loss-payback clause work?
If you finish the project without filing a claim, the insurer returns a percentage of the premium, typically 10 % to 30 %. The clause is written into the contract and paid after the policy expires.
Are subcontractors covered under my builders risk policy?
Standard builders risk policies cover the primary insured and the construction site. Subcontractors need to be listed as additional insureds, or they must carry their own coverage. Verify the wording before work begins.
What happens if a covered loss occurs after the project is 90 percent complete?
Coverage remains in force until a certificate of occupancy is issued. Even at 90 percent completion, a fire or vandalism event is still covered, provided the loss occurs before the final inspection.
How often should I update the policy if the project scope changes?
Any change that increases the total cost by more than 10 percent should trigger a policy endorsement. Submit a change-order form to the insurer within five business days of the decision. Failure to update can lead to a denied claim.
