Builders Risk: Protecting Your Investment During Construction

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Building a new structure, whether it be a commercial building or a residential home, is a big investment of time, money, and resources. And while the excitement of creating something new is palpable, the process can be troubled with challenges and unexpected costs. That’s why it’s essential to protect your investment with builders risk insurance.

Approved Casualty & Surety providers Builders Risk Insurance for homeowners and contractors. Our Builders Risk Experts understand the unique construction exposures you face, which is why we have developed tailored insurance programs to suit all types of projects.

From small to large residential construction projects and renovations, including townhomes, single family homes, and multi-level dwellings to commercial projects like offices, retail and warehouse building we can help.  Even if your project is already started, we can help secure your property with Builders Risk Insurance.

Why Choose Approved Casualty & Surety for Builders Risk Insurance


Serving you Throughout Canada

We pride ourselves on being a leading broker in Canada. We are the Building Risk Insurance Experts.

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Industry Expertise and Knowledge

We provide expert counsel and years of industry experience to negotiate fast approvals for the clients we serve.


Tailored Insurance Coverages

We have developed tailored insurance packages that take into account new home renovation trends and new material costs.

What is Builders Risk Insurance?

Builders risk insurance, also often referred to as Course of Construction insurance, is a type of insurance policy that provides coverage for the building structure and building materials used during the construction process. It protects the builder, owner, or contractor against losses or damages that may occur during the construction phase, such as theft, fire, wind, and other perils. It takes the place of the Homeowners insurance policy during the build.

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Homeowners require protection against unforeseen events: Building a new home or renovating an existing one involves a lot of risks, including natural disasters, theft, and accidents. A builder’s risk policy can provide financial protection for these risks.

Builders Risk protects against losses: If a fire, theft, or other damage occurs during the construction process, the homeowner could be left with significant financial losses. A builder’s risk policy can help mitigate those losses.

If you require funding for your build, Builders Risk Insurance may be required by lenders: Many lenders require builder’s risk insurance before they will approve a loan for a construction project.

Contractors or large builders need Builders Risk Insurance because they are responsible for protecting the structures they are building until they are completed and turned over to the property owner.

Builders Risk protects Contractors against property damage. Contractor’s equipment, tools, and supplies are at risk of being damaged, lost, or stolen during construction. A builder’s risk policy can help cover the costs of replacing or repairing these items.

Builders Risk Insurance helps manage risks by providing them with peace of mind that they are protected in the event of unforeseen circumstances.

Some clients may also require contractors to carry builder’s risk insurance as a condition of their contract.

What Does Builders Risk Insurance Cover?

 Builders risk insurance typically covers the following types of losses

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Physical Loss or Damage​

Coverage for damages to the building structure and materials, as well as equipment used during construction.


Coverage for theft of building materials, equipment, and other valuable items stored on the construction site.

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Weather-related damages

Coverage for damages caused by wind, hail, lightning, and other weather-related perils.

Equipment malfunctions

Coverage for damages caused by equipment malfunctions, such as cranes or backhoes.


Coverage for third-party injury or property damage that occurs on the construction site.

How to Choose the Right Builders Risk Insurance

When choosing a builders risk insurance policy, it’s essential to consider the specific needs of your project. For example, if your construction site is in an area prone to severe weather events, you may want to choose a policy with additional coverage for weather-related damages.

It’s also important to work with an insurance broker who understands the construction industry and can help you select the right policy for your specific needs. Your broker will help you determine the right amount of coverage, based on the cost of your materials, equipment, and labour, as well as the length of your construction project.

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Are Builders Risk and Course of Construction the Same?

Course of construction insurance is like builder’s risk insurance, but they are not the same.

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Course of construction insurance (also known as “construction all risks” or “CAR” insurance) provides coverage for damage or loss to a building or structure during its construction, renovation, or repair. This type of insurance may also cover the contractor’s liability for injuries or property damage that occur on the construction site.

Builder’s risk insurance, on the other hand, specifically covers the property of the owner or contractor during the construction process. It typically includes coverage for damage to the building or structure itself, as well as for theft, vandalism, and other risks. Builder’s risk insurance may also include coverage for materials and equipment that are stored on or off the construction site.

In other words, course of construction insurance is a broader type of insurance that covers a wider range of risks, while builder’s risk insurance is a more specific type of insurance that focuses on protecting the property of the owner or contractor during the construction process.

Both types of insurance can be important for homeowners and contractors to consider ensuring they have adequate protection during the construction process. 

By covering the structure, materials, equipment, and liability, builders risk insurance can help you recoup some of your costs if something unexpected happens.

To select the right policy and coverage, work with an insurance broker who understands your specific needs. We’ll help you choose a policy that provides the right amount of coverage for your project.