Does Builders Risk Cover Construction Defects?
Usually not for correcting defective work itself; separate resulting property damage may be covered if the policy’s ensuing-loss wording preserves it.
Usually not for the cost to correct defective work itself. The cited ISO form excludes construction and workmanship defects, although its ensuing-loss wording may preserve coverage for separate resulting physical damage.
Ask the insurer to identify the defect exclusion, any resulting-loss exception or endorsement, and whether testing changes the treatment. Compare that answer with the contractor’s warranty obligations and any architect or engineer professional liability coverage.
Coverage Guides Related to Builders Risk Insurance
Sources for Builders Risk Insurance Answers
- Small Business. National Association of Insurance Commissioners; FAQ: What’s general liability insurance?; What does general liability not cover?; What are other types of business liability insurance? Accessed 2026-09-25.
- Builders Risk Coverage Form. Insurance Services Office, Inc.; hosted by Touchpoint Markets; IH 00 70 05 17, A.1.c and A.2 pp. 1–2; A.3 and A.4 pp. 2–5; A.5 and A.6 pp. 5–8; B.2–3 pp. 10–11; C–E pp. 12–13; copyright 2017, illustrative specimen. Accessed 2026-09-25.