Property Casualty

The Advantages of a Builder’s Risk Reporting Policy

Will Roth
Will Roth
Client Executive, PC

A builder’s risk reporting policy insures damage to covered property and construction materials during a project. Equipment breakdown, flood, earthquake, and soft costs are available coverages that can be included, and soft cost coverage can be added to address additional expenses such as interest on money borrowed, real estate taxes, architectural fees, temporary storage, demolition costs, project administrative expenses, legal and accounting fees, and other costs.

Many contractors buy standalone policies to cover individual projects and these policies may be insured by different insurance carriers. This seems simple enough, but it may not always be the best choice.

What Makes a Builder’s Risk Policy the Smart Choice

A Master Builders Risk reporting form can offer significant advantages over single policies for contractors with multiple projects. Consider a few examples of why this kind of reporting form may work well:


With a reporting form policy, the contractor adds and removes projects as they begin and end. A standalone policy typically provides coverage for a full year and some insurance carriers will not reimburse if cancelled early. A reporting form works well for contractors that have projects with a quick turnaround such as a residential home builder.

Immediate Coverage

Projects added within the terms of the policy are covered right away, and the contractor typically reports their builds to the insurance carrier on a monthly basis. This provides an ease of mind that coverage is included up to the policy limits.

Set Rates

Contractors know the insurance costs upfront when adding projects to the policy, which helps manage bidding and budgets. The builder’s risk market continues to harden, especially for wood frame construction, and there is a benefit of knowing what your rate will be in advance.

Cash Flow Management

The contractor only pays for active projects, improving cash flow.

Manage Exposures

An additional benefit of the contractor managing the builder’s risk reporting policy instead of the owner is the contractor can confirm the coverages are correct. Permission to occupy a covered location or soft costs are not always included in a policy and could affect the contractor at a time of loss. When the contractor can ensure the coverages are right, they would no longer have to rely on the owner to manage the exposures.

The Right Policy for Your Construction Projects

The bottom line is a reporting form policy allows the contractor to confirm coverages are sufficient and can save money and time for your business. With enhanced flexibility, instant coverage, and no surprise rates, the builder’s risk reporting policy is the strategic choice for many of our clients.

If you have questions about a Master Builders Risk reporting form or you’re ready to start a conversation about a policy, reach out and let’s get started!

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