What type of insurance policy is necessary for a building under construction?

A Builders Risk policy is specifically designed for properties that are under construction. This type of insurance provides coverage for buildings during the course of construction against risks such as fire, vandalism, theft, and certain types of damage. Unlike a Commercial Property policy, which covers completed buildings, a Builders Risk policy recognizes the unique risks associated with construction sites, where materials and structures are exposed to various hazards.

Additionally, while a General Liability policy is essential for protecting against claims related to bodily injury or property damage that might occur due to contractors' operations, it does not cover damage to the structure itself that is under construction. Workers' Compensation is necessary to cover employee injuries but does not protect the building under construction. Therefore, the Builders Risk policy is vital to ensure that both the structure being built and materials on-site are sufficiently protected during the construction period.