Question 1

Is builder's risk enough for a development company?

Accepted Answer

Usually no. Builder's risk addresses project property during construction for a specific site. Development entities also need liability for premises and operations, may sponsor or participate in wrap-ups on larger jobs, and must plan for completed-operations exposure and permanent property after handover. Tools coverage for trade contractors belongs on the contractors page — not as a substitute for developer enterprise coordination.

Question 2

What is a wrap-up or OCIP, and when do developers use one?

Accepted Answer

A wrap-up consolidates liability for enrolled parties on a project under one controlled program. An Owner Controlled Insurance Program (OCIP) is owner-sponsored; a Contractor Controlled Insurance Program (CCIP) is GC-led. Developers often consider wrap-ups on larger multi-trade projects to reduce certificate gaps — they do not automatically replace every contractor's own CGL for off-site work, auto, or tools.

Question 3

How are multiple projects handled?

Accepted Answer

Each project typically needs its own builder's risk schedule (or clear reporting under a master program), while entity liability may sit at the corporate or development-company level. Pipeline size, JV structures, and lender conditions affect how programs are organized. Tell your broker about active and upcoming sites — not only the job starting next month.

Question 4

What happens to coverage after project completion or occupancy?

Accepted Answer

Completion, occupancy, ready-for-takeover, policy expiry, or other events may affect when builder's risk ends depending on the policy wording. Permanent property or inventory coverage should be coordinated as applicable before construction coverage ends. Liability for alleged post-handover injury or damage depends on completed-operations wording under the applicable GL or wrap program — review timing before units are sold or leased.

Question 5

What information is needed to structure a developers insurance program?

Accepted Answer

Expect questions about ownership entities, project pipeline and values, construction types, contract structures, lender insurance schedules, wrap-up strategy, subcontracting approach, joint ventures, claims history, and how projects transition to occupancy. Professional or environmental exposures are reviewed where operations create them — not every developer needs every specialty line.

Builders & Developers Insurance

What's covered

Each project needs its own property schedule

Practical considerations

Why a broker?

Your operation

Multiple insurance markets

Premium broker

Right-fit coverage

Builders & developers FAQ

Structuring coverage across your developments?

Builders & Developers Insurance

What's covered

Each project needs its own property schedule

Practical considerations

Per-project builder's risk vs master programsMost developments place course-of-construction coverage per project for completed value and duration.

Lender requirements and draw conditionsConstruction financing agreements may require evidence of builder's risk and other specified insurance before advances are released.

OCIP / CCIP sponsorship decisionsOwner- or contractor-controlled wrap-ups can simplify onsite liability for enrolled parties on large projects, but they need…

Completed operations and post-handover exposureAfter units or buildings are sold or leased, claims can still allege injury or damage from construction work.

Unsold inventory and spec buildings after builder's risk endsWhen course-of-construction coverage ends, unsold completed buildings or speculative inventory typically need permanent property or inventory arrangements.

Vacant land and pre-construction liabilityOwned vacant parcels and sites awaiting permits can create premises liability even before construction starts.

Joint ventures — who places what coverageJV and co-development agreements should allocate who places builder's risk, who sponsors wrap-up liability, named-insured status, and how…

Transition from construction to permanent propertyCompletion, occupancy, ready-for-takeover, policy expiry, or other events may affect when builder's risk ends depending on the policy wording.