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Builders Risk Insurance: Protecting New York Contractors and Their Projects

Builders Risk Insurance: Protecting New York Contractors and Their Projects


For contractors in New York, protecting their projects against potential risks is a crucial aspect of their work. Construction sites are vulnerable to a range of hazards, including theft, vandalism, natural disasters, and accidental damage. To mitigate these risks, contractors often turn to Builders Risk Insurance. In this article, we will explore what Builders Risk Insurance is, why it is important for New York contractors, and how it can safeguard construction projects.

Understanding Builders Risk Insurance:

Builders Risk Insurance, also known as Course of Construction Insurance, is a specialized type of property insurance designed to cover buildings and structures during the construction phase. It provides coverage for the structure itself, as well as materials, equipment, and fixtures on-site. The policy typically begins when construction commences and ends when the project is completed or handed over to the owner.

Coverage and Benefits:

1. Property Damage: Builders Risk Insurance covers damages caused by various perils, such as fire, lightning, windstorms, vandalism, theft, and certain natural disasters. It can include repairs or replacement costs for damaged property, including the structure, materials, and equipment.

2. Delayed Project Expenses: If a covered loss occurs, resulting in a project delay, Builders Risk Insurance can cover additional expenses, such as temporary site security, extended construction loan interest, and leasing alternative equipment.

3. Soft Costs: Soft costs refer to expenses beyond physical property damage, such as architectural and engineering fees, permits, legal fees, and advertising costs. Builders Risk Insurance can cover these costs in the event of a covered loss, helping to minimize financial burdens on contractors.

4. In-transit Coverage: Builders Risk Insurance can also extend coverage to materials and equipment in transit to the construction site. This protects contractors against potential losses during transportation.

5. Subcontractors Coverage: Depending on the policy, Builders Risk Insurance can also extend coverage to subcontractors working on the project. This ensures that all parties involved in the construction process are adequately protected.

Importance for New York Contractors:

1. High-Risk Environment: New York, with its dense urban areas, extreme weather conditions, and high construction activity, presents unique challenges and risks for contractors. Builders Risk Insurance provides a safety net against these risks, ensuring that contractors can navigate the complexities of construction projects with confidence.

2. Regulatory Requirements: In many cases, Builders Risk Insurance is a contractual requirement imposed by project owners, lenders, or general contractors. By having this insurance in place, New York contractors can comply with these requirements and secure valuable contracts.

3. Financial Protection: Construction projects involve substantial investments of time, money, and resources. Builders Risk Insurance offers financial protection, ensuring that contractors are not burdened with unexpected repair or replacement costs in the event of a covered loss.

4. Peace of Mind: Knowing that their projects are insured against unforeseen risks provides contractors with peace of mind. It allows them to focus on the construction process, confident that they have taken appropriate measures to protect their investment.

Choosing the Right Policy:

When selecting a Builders Risk Insurance policy, New York contractors should consider the following:

1. Coverage Limit: Ensure that the policy’s coverage limit is adequate to cover the full value of the project, including materials, labor, and soft costs.

2. Exclusions: Review the policy’s exclusions and limitations to understand what is not covered. Common exclusions may include faulty workmanship, design errors, or certain natural disasters.

3. Deductible: Evaluate the deductible amount and assess its impact on the project’s overall budget.

4. Additional Coverage Options: Some policies may offer additional coverage options, such as pollution liability or equipment breakdown coverage. Contractors should assess their specific needs and choose policies accordingly.


Builders Risk Insurance plays a vital role in protecting New York contractors and their construction projects. By providing coverage against property damage, delays, and soft costs, this insurance safeguards contractors from potential financial setbacks. Given the high-risk environment and regulatory requirements in New York, having Builders Risk Insurance is not only prudent but also necessary. With the right policy in place, contractors can navigate their projects with confidence, knowing they have taken proactive steps to mitigate risks and protect their investments.

If you would like to speak with us call Gary Wallach at 914-806-5853 or click here to email or click here to visit our website.

BGES Group, located in Larchmont, N.Y. are New York Construction Insurance Specialists that represent 50+ companies and all the BEST general & umbrella liability programs!  We offer every coverage you need including property, builders risk, inland marine, general liability, umbrella liability, auto, bid & performance bonds, workers’ compensation, N.Y.S. disability and group health.  We are extremely responsive, responsible, trustworthy, fast, minimize your insurance headaches, we don’t charge ridiculous policy or service fees and when you call, text or email, whatever time of day, even weekends, we are ARE THERE to help YOU!

BGES Group are Workers’ Compensation Insurance Specialists for Tri-State Business Owners: Unhappy with your rates, company, being cancelled, losses causing difficulty getting coverage, in the middle of an audit dispute, payrolls misclassified, whatever your issue, we can help!  We have special programs for: Auto Service, Contractors (especially New York), Limousine Services, Logistic Companies, Manufacturers, Recyclers, Truckers, we can help ANY tri-state business owner.  We are considered “Preferred Agents” for this one program that if we can get you in, their pricing is excellent, offers long-term coverage stability and can cover multi-state operations. Program takes the hassle out of doing annual audits too.

In addition, we offer all personal insurance coverages including home, auto, boat, jewelry, fine arts, life, disability, health and long-term care.  When was the last time you got a complete check up for all your coverage needs?   We are extremely caring and would love the chance to help you with your personal insurance needs.

BGES Group is an insurance agency whose owner is very responsible, responsive, offers boutique, very personal service and is ALWAYS there when you need him most!

We know reading an article we post or getting an email is not the best way to consider working with someone.  If you are interested, go read our “Google Reviews” and see what people have to say about us!  That can give you the comfort level needed to contact us.

If you would like to speak with us call Gary Wallach at 914-806-5853 or click here to email or click here to visit our website.

Company: BGES Group, 216A Larchmont Acres West, Larchmont, NY 10538



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