Property Insurance for Contractors

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In this course all but one of the chapters examines the coverage provided by three types of property insurance policies.

• Commercial property policies
• Builders risk policies
• Contractors equipment policies

Commercial property policies are designed to provide insurance on existing buildings and their contents. The contractor purchases this type of policy to respond to loss or damage in connection with its own facilities. Builders risk policies are designed to provide insurance on property being constructed, installed, altered, or repaired. The builders risk policy for each project may be purchased by either the contractor or the project owner. Contractors equipment policies are designed to provide insurance on the mobile equipment that is used in construction activities. They are purchased by the contractor as the owner (or lessor) of the equipment. The last chapter of this course briefly overviews two other types of property insurance policies that contractors may need, as follows.

• Commercial crime policy
• Equipment breakdown policy

Upon completion of this course, students will be prepared to:

• Identify the key property loss exposures contractors face, including loss to their own facilities and equipment, loss to buildings under construction, and resulting income and expense loss exposures.
• Identify potential gaps between contractors' property loss exposures and the coverage provided under a commercial property insurance policy, a builders risk insurance policy, and a contractors equipment insurance policy.
• Assess the coverage provided by a commercial property, builders risk, and contractors equipment policy with respect to a variety of property claims.
• Determine appropriate coverage modifications to close potential gaps in contractors property insurance programs.
• Make recommendations regarding appropriate property coverage provisions or endorsements based on a contractor's specific operations.
• Evaluate a contractor's need for commercial crime insurance and make recommendations for selection of particular coverages.