Inland marine vs. builders risk insurance

Builder's risk insurance, also called course of construction insurance, is a type of inland marine coverage that protects small businesses from expenses related to damages that occur during a construction project.

The policy covers physical losses and physical damage to the building under construction resulting from fire, vandalism, theft, and non-severe weather events. It also protects against damage to materials (whether on-site, in transit, or in storage).

Builder's risk is often purchased as a short-term risk management measure to help construction businesses avoid expensive mistakes or accidents that can occur during the course of construction.

Many clients will request a builder's risk policy to be purchased before signing a contract and starting a new construction project.

You may need both policies depending on your business needs, client requests, and exposures.

For example, if you frequently transport or store business property when not specifically performing construction projects, you may only need an inland marine policy.

Inland marine policies are relevant to non-construction businesses, such as photographers, food trucks, and IT consultants who often transport expensive property but do not perform construction.

You may just need a builder's risk policy if you only plan on using and storing equipment and building materials to and from construction job sites. However, your property would not be covered in the event of an accident or incident that occurs while transporting equipment and materials to and from the construction site.

If you work in construction and frequently transport costly property, you should strongly consider carrying both policies to ensure your business is fully protected from costly property damage while away from your commercial property. 

Additionally, clients, subcontractors, building owners, or commercial builders may require one or both policies before signing a contract.

With one easy online application, Insureon can help you find quotes from the U.S.'s leading insurance companies.

If you have questions about your insurance coverage, you can speak to our licensed insurance agents, who are about knowledgeable the best policies for the construction industry and beyond.

In addition to inland marine and builder's risk coverage, you can also discuss other important policies, such as general liability insurance and commercial property insurance, for protecting your business, clients, and employees.

Once you find the right liability coverage for your unique business operations, you can start your insurance policy and obtain a certificate of insurance, often within 24 hours.