Avoid Costly Delays: How Builder’s Risk Insurance Protects Your Construction Project

When you’re managing a construction project, time is money. Every day your project is delayed can lead to higher labor costs, penalties from lenders, and unhappy clients. In Connecticut — where unpredictable weather, material theft, and strict building codes can cause serious setbacks — protecting your project timeline isn’t optional.

That’s where Builder’s Risk Insurance steps in. It’s designed to shield your investment from the unexpected, keeping your construction schedule and budget on track.

Why Delays Are a Construction Project’s Biggest Threat

Construction delays aren’t just an inconvenience — they can cripple a project’s profitability. In 2025, industry data shows that over 60% of construction projects experience delays, often adding weeks or even months to timelines.

Common delay triggers include:

• Severe weather — storms, heavy snow, or hurricanes.

• Theft and vandalism — stolen materials like copper wiring or lumber.

• Fire or explosion — especially during framing and electrical work.

• Material damage during storage or transit.

In Connecticut, these risks are amplified by Nor’easters, winter storms, and occasional hurricanes. One bad storm can cause thousands of dollars in damage and weeks of lost time.

What Is Builder’s Risk Insurance?

Builder’s Risk Insurance — also called “course of construction” insurance — covers buildings and structures while they’re under construction or renovation.

It typically protects:

• The building itself

• Materials on-site, in storage, or in transit

• Temporary structures like scaffolding or fencing

Who needs it?

• General contractors

• Developers

• Property owners

• House flippers and renovators

It’s different from general liability insurance, which covers injury or damage to others. Builder’s risk focuses on protecting your project from direct loss.

How Builder’s Risk Insurance Helps Prevent Costly Delays

Coverage for Weather Damage

Connecticut’s weather can turn on a dime. A sudden snowstorm, high winds, or heavy rain can cause significant damage to partially built structures. Builder’s risk insurance helps cover repair costs quickly so work can resume without long delays.

Protection Against Theft & Vandalism

Materials and tools left on job sites are easy targets. If a thief makes off with thousands in copper wiring or roofing shingles, your insurer can help replace them promptly — preventing weeks of waiting for replacements.

Fire & Explosion Coverage

During early construction phases, electrical work, welding, and temporary heating systems can raise fire risks. Builder’s risk insurance helps cover the rebuilding costs without halting progress indefinitely.

Material & Equipment Coverage

Builder’s risk often extends to materials stored off-site or in transit, which means damaged or lost shipments don’t have to derail your schedule.

Builder’s Risk Insurance Coverage Checklist

Here’s a quick look at what’s usually covered — and what’s not:

Risk	Covered?	Notes
Fire	✅	Includes materials & structure under construction
Theft	✅	Covers stolen tools & building materials
Weather Damage	✅	Includes storms, snow, wind (except flooding)
Vandalism	✅	Deliberate damage to the site or materials
Earthquake	❌	Usually needs a separate policy
Flood	❌	Requires flood insurance
Employee Injury	❌	Covered under Workers’ Compensation

Connecticut-Specific Considerations

Construction in Connecticut faces unique challenges:

• Nor’easters & snowstorms — can damage framing, delay roofing, and waterlog materials.

• Hurricane season — potential for wind and rain damage to partially built projects.

• Strict building codes — damage can mean re-inspection and added delays.

Having a CT-tailored builder’s risk policy ensures these regional risks are addressed.

How Much Does Builder’s Risk Insurance Cost?

The cost depends on:

• Project size and value

• Location

• Coverage limits

• Duration of the build

In Connecticut, small residential projects might cost $500–$2,500, while large commercial builds can exceed $10,000+.

Tip: Bundling with other business coverages (like General Liability or a Business Owner’s Policy) through an independent broker often lowers premiums.

Tips for Choosing the Right Builder’s Risk Policy

1. Work with an independent insurance broker– They can shop multiple carriers for the best rates and coverage. ([Insure Connecticut LLC] is licensed in CT and multiple states.)

2. Match policy term to your build schedule– Extensions are possible, but can cost more if you wait until the last minute.

3. Cover the full replacement value– Underinsuring could leave you paying out of pocket for losses.

4. Check exclusions carefully– Flood, earthquake, or design flaws are often excluded.

Final Thoughts

Builder’s risk insurance isn’t just a “nice-to-have” — it’s a project-saver. It keeps your schedule on track, your materials protected, and your budget safe from costly surprises.

Before your next construction or renovation begins, make sure you have a policy that’s tailored to your project and location.

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FAQ – Builder’s Risk Insurance

Does builder’s risk insurance cover delays caused by labor shortages?

No. It covers physical damage or loss, not workforce issues.

Do I need builder’s risk for small renovation projects?

If the work is extensive and materials are at risk, yes. Even a kitchen remodel can benefit.

Can I get short-term builder’s risk insurance?

Yes, some carriers offer policies for just a few months.

Protect your construction investment from costly delays. Contact Insure Connecticut LLC today for a personalized builder’s risk insurance quote tailored to your project’s needs.