Construction insurance (often called builders risk or construction all-risk) protects a project from damage, theft, and certain liability during construction.
Because materials, labor, and schedules are exposed differently from completed buildings, underwriters rate these policies by project duration, subcontractor network, and site controls.
Claims mechanics
Claims are built around location-based inspections, contractor logs, and weather and delay records. Losses may include replacement value for materials and structural recovery costs.
Practical example
If scaffolding damage from a storm delays completion, the policy can cover the damaged structure, but contractual schedule penalties are generally only covered if specifically insured.