Builder’s Risk Insurance vs Inland Marine Insurance

What does Builder’s Risk cover, and what about Inland Marine? The two policies may seem similar. The average contractor’s Inland Marine policy costs around $3000. While Builder’s Risk is usually 1-5% of total costs.  Let’s take a look at some of the differences, and help you select the best coverage for the job.

1. The Building 

What does Builder’s Risk cover?

The main purpose of Builder’s Risk insurance is to protect the structure while it’s being worked on. Builder’s Risk looks after all ‘covered causes of loss’. These are external events like wind, rain, fire, theft and arson.  You can add more with policy extensions.

In construction, even small external problems can spell disaster. If water leakage on the 25th floor of a building damages the floors below, there could be a bill of over $10 million without Builder’s Risk.

What does Inland Marine cover?

Inland Marine doesn’t cover the structure.  Only the equipment and materials used to build it.

2. On-site Property

What does Builder’s Risk cover?

Builder’s Risk covers on-site equipment and materials from the damages listed.

An estimated $300 million and $1 billion worth of equipment is stolen from construction sites every year. Construction fires make up an estimated 0.2% of all fires.  But, they cost the industry $300 million in 2017. This is due to the destructive potential of building materials.

What does Inland Marine cover?

Inland Marine was created to protect land-based transit of cargo. It isn’t really designed for fixed locations. It does, however, cover mobile equipment like forklifts, cranes and excavators.

3. Property in Transit

What does Builder’s Risk cover?

Builder’s Risk doesn’t always cover property in transit by default.

But good news. One benefit of Builder’s Risk is how customizable it is. Extensions for property in transit can be easily added to your Builder’s Risk coverage.

What does Inland Marine cover?

Inland Marine insurance protects specialized equipment.  This includes construction, medical and computer gear, while they’re moving.

Inland Marine covers the same types of loss as Builder’s Risk, with a few extensions like accidental drops.

4. Property at a Temporary Location

What does Builder’s Risk cover?

Builder’s Risk can cover stored property that will become part of the finished structure.

If you purchase this type of coverage, it means you can store allocated materials in a warehouse and they’ll be protected.

What does Inland Marine cover?

Inland Marine also covers your property while it’s in storage at a temporary location.

You may not have to allocate the property.  But, regulation for Inland Marine can be inconsistent, so always double-check.

The Best Plan for you

For small companies working short jobs, Inland Marine may be enough to cover your basic equipment. But Builder’s Risk can be easily extended to protect most of the same losses as Inland Marine insurance.  Beyond the massive safeguard it provides for the building.

A Builder’s Risk policy tailored especially for your business and its unique risks gives real protection.

We’d like to help you find just that. Give Builder’s Risk a call on  887 960 0221.