Which insurance type would you likely need if you are building a new structure?

Builders risk insurance is specifically designed for construction projects, providing coverage for buildings under construction. This type of insurance protects against damage to the structure itself, materials, and equipment during the building phase. Since construction sites are particularly vulnerable to a variety of risks, including fire, theft, vandalism, and adverse weather conditions, builders risk insurance is essential for safeguarding the financial investment associated with a new structure.

Unlike general liability insurance, which covers bodily injury and property damage to third parties, or workers compensation, which provides medical benefits and wage replacement to employees injured on the job, builders risk focuses solely on the construction site. Errors and omissions insurance typically pertains to professional services and protects against claims of negligence in the advice or services provided, which isn’t applicable to the physical risks inherent in constructing a new building. Therefore, when embarking on building a new structure, builders risk insurance is the most relevant and necessary type of coverage.