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Builder's Risk (Course of Construction) Insurance
Whether you’re renovating a client’s home or building a commercial property, unexpected events can occur anywhere. Possessing a builder’s risk (course of construction) insurance policy is imperative to ensure you’re financially covered. Get a quote and buy insurance for your business in under five minutes, entirely online.
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How Builder's Risk Insurance Protects You
The Project Itself
This includes physical damage to the building under construction or renovation:
The structure being built (new or renovated)
Temporary structures (scaffolding, site offices)
Construction forms and foundations
Materials and Equipment
Coverage for your tools and supplies, such as:
On-site materials and fixtures
Equipment and supplies in transit
Items stored off-site but intended for use in the project
Theft and vandalism losses
Costs Related to Delays
Protection for the financial effects of insured losses:
Soft costs like architectural fees, permits, and loan interest
Lost income or rental revenue from project delays (optional)
Debris removal and cleanup costs
Coverage That Works While You Do
Construction doesn’t stop for surprises. And neither should you.
Builder’s Risk Insurance helps cover physical damage, stolen supplies, and delays caused by covered events. It’s not just about what you’ve already built, it’s about keeping the entire project on track, from the first shovel to the final inspection.
Perhaps a storm damages your framing, some materials go missing overnight, or a fire breaks out halfway through the job. These are the risks that come with every construction site, no matter how careful or experienced you are.
That’s why Builder’s Risk Insurance exists. It protects your work, your materials, and your investment while the job is still in progress.
Smart builders plan for the unknown.
You’re managing tight schedules, strict budgets, and big expectations. The last thing you need is to pay out of pocket when something goes wrong.
With Builder’s Risk Insurance, you can keep moving forward with the knowledge that the work you’ve done and the work ahead are both protected.
FAQs About Builder's Risk (Course of Construction) Insurance
What does Builder’s Risk Insurance cover?
It covers property and materials during a construction or renovation project. This includes the structure itself, on-site materials, equipment, and sometimes even materials in transit or stored off-site. It can also cover cleanup costs, soft costs from delays, and loss of income if added to the policy.
Who needs Builder’s Risk Insurance?
If you’re responsible for a building under construction, whether as a contractor, developer, or property owner, you likely need this coverage. Many lenders and project owners also require proof of Builder’s Risk coverage before work begins.
Is Builder’s Risk the same as General Liability?
No. General Liability covers third-party injuries or property damage, like if someone trips on your site. Builder’s Risk covers damage to the project itself, including fire, theft, vandalism, and certain weather events.
When should I buy Builder’s Risk Insurance?
You should make sure your policy is in place before any work starts on the project. It won’t cover pre-existing damage or losses that happen before the policy begins.
Does Builder’s Risk cover weather damage?
Yes! In most cases, common weather-related risks like wind, hail, or lightning are covered. However, flood or earthquake coverage usually needs to be added as an endorsement.
Why am I responsible for accidents I didn’t cause?
If you’ve signed a contract, you’re often liable for any damage during construction, even if it wasn’t your fault. Builder’s Risk ensures you’re not left covering those costs on your own.
How Much Does Builder's Risk Insurance Cost in Canada?
The cost of Builder’s Risk Insurance depends on multiple factors, such as the size, value, and duration of your project, along with factors like location, materials used, and who’s managing the build. However, it's certainly less than the cost of replacing stolen materials, repairing storm damage, or recovering from a major project delay.
With APOLLO’s online platform, getting a personalized quote takes less than five minutes. You’ll see coverage options designed to match your exact build.
Our policy supports all construction types, with coverage limits up to $2M for frame construction and up to $5M for other types. Limits may vary based on fire protection and overall project complexity.
Here's what impacts the cost of your policy:
Total Project Value
The higher the construction value, the higher the exposure — and the more coverage you’ll need to stay protected.
Type of Construction
Wood-frame builds, for example, typically cost more to insure than fire-resistant or non-combustible structures.
Project Duration
Short-term renovations may cost less than a multi-phase commercial build. Most policies are written to match your timeline.
Location
Construction sites in areas prone to theft, storms, or other localized risks can affect pricing.
Security Measures in Place
Fenced perimeters, cameras, or on-site security may reduce your rate by lowering your risk profile.
Coverage Add-Ons
Want to cover materials in transit, soft costs from delays, or loss of income? These can increase your premium — but also your peace of mind.
Weather Risks Across Canada
Wind Damage in Calgary
Strong chinooks and sudden wind gusts can cause tarps to tear, scaffolding to fall, or framing to shift before it's secured.
Example: A mid-rise framing project was delayed for weeks after overnight winds collapsed temporary fencing and damaged support structures.
Insurance Solution: Builder’s Risk covers damage to the structure, materials, and temporary works, helping you avoid costly delays.
Coastal Storms in Halifax
Atlantic storms and high winds often hit construction sites hard, especially near the coast. Temporary protection isn’t always enough.
Example: A commercial build on Halifax’s waterfront lost a full shipment of materials when strong winds toppled a delivery before it could be secured.
Insurance Solution: Builder’s Risk can cover both the lost materials and the soft costs tied to project delays.
Snow Load in Ottawa
Heavy snow can pile up quickly on exposed framing or unfinished roofs, causing bowing, collapse, or costly do-overs.
Example: A snowfall accumulation caused a partially completed roof to cave in overnight, setting back progress and requiring a complete rebuild.
Insurance Solution: Builder’s Risk can cover the cost to repair structural damage and replace lost materials — even during weather delays.
Insurance Is a Business Essential, Not Just a Backup Plan
Builder’s Risk Insurance does more than cover damage during construction. It helps you meet project requirements, keep timelines on track, and protect the progress you’ve worked hard to build. Here’s what it makes possible:
Win more jobs - Lenders, project owners, and municipalities often require proof of Builder’s Risk coverage before work can begin. Having it in place shows you’re prepared and professional.
Give clients peace of mind - A Certificate of Insurance shows your clients that their investment is protected from start to finish, and that you’re ready to take responsibility for the job.
Say yes to bigger projects - Working on larger builds or taking on more complex renovations? Builder’s Risk coverage helps you meet compliance standards and manage higher stakes with confidence.
Keep the project moving - Delays from fire, theft, or weather damage can cost thousands. With Builder’s Risk coverage, you can recover faster and avoid out-of-pocket expenses that derail your schedule.
Protect your reputation - You can’t control the weather, crime, or accidents, but you can control how you respond. Insurance helps you protect not just the build, but your business.
What Clients, Lenders & Contracts May Require from Builders
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Certificate of Insurance (COI)
Many clients, lenders, and municipal bodies require proof of active Builder’s Risk Insurance before work can begin. APOLLO sends your documents right to your inbox instantly after purchasing your policy online.
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Project-Specific Coverage Limits
Larger builds or high-value renovations often require specific limits based on the total construction cost. APOLLO makes it easy to select the right limit for your project and stay compliant with contract terms.
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Named Additional Insureds
Lenders, property owners, and municipalities may need to be listed on your policy. APOLLO lets you add these parties quickly, helping you avoid project delays and meet legal or funding requirements easily.
PRO TIP: Many jurisdictions and lenders require proof of Builder’s Risk coverage before work begins.
Having your COI ready from APOLLO helps avoid project delays.
Liability Quiz
Do I really need Builder’s Risk if I already have general liability?
Yes. General liability covers injuries or third-party property damage, not damage to the project itself. Builder’s Risk covers the structure under construction, materials, and equipment on-site.
What if someone steals materials from my site overnight?
That’s exactly what Builder’s Risk is for. If materials are stolen, your policy can help cover the cost of replacing them and keeping your project on schedule.
Does this cover weather damage?
Most common weather events like wind, hail, or lightning are covered. If you’re in an area prone to floods or earthquakes, you may need to add those as optional endorsements.
Can I still get covered if construction has already started?
Builder’s Risk usually needs to be in place before the project begins. If construction is already underway, you may have fewer coverage options, so it’s best to set up your policy early.
What if my project takes longer than expected?
With APOLLO, you can extend your Course of Construction policy for up to 18 months total. Brokers can make updates anytime through our Policy Portal, just make sure to extend your coverage before it expires to avoid any gaps.
Can I add the property owner or lender to the policy?
Yes. You can easily add lenders, property owners, or municipalities as additional insureds. This is often a requirement for financing or permitting.
The Cost of Not Having Builder's Risk Insurance
Scenario | Out-of-Pocket Cost (Without Insurance) | Covered By Insurance? |
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A fire breaks out mid-construction, destroying part of the structure and on-site materials. | $20,000–$250,000+ (repairs, materials, delays) | ✔ Builder’s Risk |
Construction materials are stolen from the job site overnight. | $5,000–$50,000+ (replacement costs, project delay) | ✔ Builder’s Risk |
A storm causes structural damage to a partially built home. | $10,000–$100,000+ (repair and recovery costs) | ✔ Builder’s Risk |
Off-site storage floods and damages materials meant for the project. | $5,000–$75,000+ (materials and timeline loss) | ✔ Builder’s Risk with off-site coverage |
Delays from covered damage cause missed deadlines and additional soft costs. | Depends. Can be thousands in financing, permits, or lost revenue | ✔ Optional Soft Cost Coverage |
Top 5 Mistakes Builders Make (And How to Avoid Them)
1. Starting a project without insurance in place
Builder’s Risk coverage must be active before work begins. If you wait until construction has already started, you may not be eligible for coverage, and any damage that occurs won’t be insured.
2. Assuming general liability is enough
General liability covers third-party injury or property damage, not damage to your own work, materials, or tools. Builder’s Risk fills that gap by protecting the project itself.
3. Forgetting to cover materials in transit or stored off-site
Not all policies automatically include off-site or in-transit materials. If your supplies are stolen before they reach the site or damaged in a temporary warehouse, you could be on the hook.
4. Underestimating the project timeline
If your policy expires before construction is complete, you may be left exposed. Extensions are possible, but it’s better to plan for a realistic timeline upfront.
5. Leaving key stakeholders off the policy
Lenders, project owners, and even municipalities often need to be listed as additional insureds. Forgetting this step can hold up permits, funding, or project approvals.
Real Claim Stories We've Helped With
Heater Fire During Winter Renovation
During a renovation in Kelowna during the middle of winter, a builder used a propane heater to keep materials from freezing overnight. A malfunction sparked a fire that destroyed framing, tools, and materials throughout the unfinished structure.
Liability coverage handled $130,000 to rebuild the damaged structure and replace tools and materials.
An additional $15,000 was paid for debris removal and site cleanup.
Total covered loss: $145,000.
Stolen Fixtures from a Locked Job Site
A homeowner building a custom infill home in Mississauga had high-end fixtures delivered early. Despite fencing around the property, thieves broke in overnight and stole $40,000 in materials waiting to be installed.
Coverage included $40,000 to replace stolen items.
An additional $6,000 was paid for temporary security and upgraded fencing.
Total covered loss: $46,000.
Neighbour Injury During Site Visit
While visiting an active job site in Vancouver to discuss a fencing issue, a neighbour tripped over uneven ground and fractured their ankle. They sued both the homeowner and contractor for unsafe site conditions.
General liability coverage paid $48,000 in legal and medical expenses.
An additional $12,000 covered lost income and pain and suffering.
Total covered loss: $60,000.