Builders Risk Insurance in Vermont

T.S. Peck Insurance
Builders Risk Insurance Vermont

What is builders risk insurance?

Construction projects are fraught with potential issues that could result in work delays or even total work stoppage. To mitigate the financial risks associated with such potentialities, construction companies and others in Vermont can purchase builders risk insurance.

Builders risk insurance is designed specifically for ongoing construction projects. It may offer financial assistance should a covered event disrupt an insured project’s progress.

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Builders Risk Insurance Vermont

Who in Vermont should consider builders risk coverage?

Builders risk coverage could be helpful to anyone with a stake in a construction project in Vermont. This includes developers, construction companies, general contractors, their subcontractors, lenders and property owners.

Developers and general contractors are typically the parties who purchase this coverage, and less often subcontractors might too. This is because developers and general contractors are most likely to be held responsible for any work interruptions.

Much less often, lenders and property owners could also purchase coverage. In most cases, however, lenders and property owners instead stipulate that a contractor buys the policy.

What assets are protected by builders risk coverage?

Builders risk coverage usually can extend its coverage to include supplies, equipment, and any completed work that has been damaged. Coverage for supplies and equipment typically applies only when these items are on-site at the project location, though the specifics can vary from policy to policy.

With most policies, contractors can protect assets such as the following:

  • Large and heavy equipment
  • Specialized equipment
  • General tools
  • Specialized tools
  • Materials and supplies
  • Structures in progress

The coverage for structures in progress might be limited to specific structures, or might encompass all structures at the project site. An agent who’s familiar with the nuances of builders risk policies can help contractors scrutinize policy details, and find suitable coverage for their tools, equipment, supplies and structures.

What kinds of projects can be covered by builders risk policies?

Builders risk policies are available for a wide range of large construction projects, including residential developments, multi-family buildings, office structures, retail outlets, and industrial facilities. Coverage can also be obtained for public works projects, extensions and renovations, and significant landscaping or hardscaping work.

Policies for single-family home construction projects are less common, making it more challenging to find suitable coverage for building, extending, or remodeling such homes. However, homeowners or contractors can consult with an experienced insurance agent to explore potential coverage options.

Builders Risk Insurance Vermont

What risks are covered under builders risk policies?

The specific risks covered by a builders risk policy are dictated by the policy’s terms, conditions, and exclusions. Depending on these, a policy could cover risks like:

  • Theft
  • Vandalism
  • Fire
  • Water Damage
  • Weather-related incidents
  • Other perils

A named perils policy will typically state the risks it covers explicitly, while an open perils policy typically covers all risks unless they are specifically excluded. Open perils policies tend to offer more comprehensive protection than named perils policies.

How can stakeholders in Vermont secure builders risk insurance?

Builders risk coverage is often procured as part of a package policy, alongside other relevant coverages, offering a convenient and flexible solution for contractors. A commercial package policy that’s designed for contractors or developers, for instance, might contain this coverage.

Less frequently, coverage can be obtained as a standalone policy or added to another policy via an endorsement. Most contractors find that this option is less cost-effective.

If you need assistance insuring current or upcoming construction projects in Vermont, reach out to the independent insurance agents at T.S. Peck Insurance. Our team will come alongside to ensure all necessary protections, including builders risk insurance, are in place while you’re working on a project.


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T.S. Peck Insurance

For questions or concerns, please contact our independent insurance agents.

Office: 41 IDX Drive, Suite 135
South Burlington, VT 05403

Office: 158 Lake St,
St Albans, VT 05478