Does Builders Risk Cover Delay?

Generally no—a delay by itself is not insured under the cited ISO form; an endorsement may cover specified extra costs when covered physical damage delays the project.

Generally no. A delay by itself is not insured under the cited ISO form; an endorsement may cover specified extra costs when covered physical damage delays the project. Oregon’s guidance explains that soft-cost coverage is added by endorsement and may cover certain project expenses caused by a covered physical loss. A late delivery, labor shortage, permit delay, or contractor default is different from delay caused by insured physical damage. Ask whether the quote includes delay-in-completion or soft-cost coverage, what event triggers it, which expenses qualify, and the maximum period and dollar limit. If the delay follows only a late permit, labor shortage, or contractor dispute, business interruption insurance may not answer it because property coverage usually requires insured physical damage. If a covered loss causes delay, ask whether a delay-in-completion or soft-cost endorsement applies. Compare the trigger, time deductible, maximum restoration period, scheduled expenses, and proof required for each cost.

Sources for Builders Risk Insurance Answers

  1. 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.
  2. Insurance Clauses – Builders Risk. Oregon Department of Administrative Services; Builders Risk: Clause, When do they apply?, Notes, Additional Information; Builders Risk Installation Floater. Accessed 2026-09-25.

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