Definition
Coverage for properties under construction against damage or loss—the construction equivalent of 'hope for the best, insure for the worst.'
Example Usage
The builder's risk insurance protected the project against fire, theft, and weather damage during construction.
Origin
Insurance terminology, formalized in the early 1900s
Fun Fact
Builder's risk policies are why construction projects don't end in total financial disaster when a storm hits.
Source: Insurance Institute Standards
Related Terms
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See “Builder's Risk Insurance” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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