It typically covers the work in place plus materials at the site, in transit, and in off-site storage. Coverage usually ends when the project is complete and accepted. There is no single standard form, so terms vary widely. The named insureds (owner, contractor, and subcontractors) are negotiated in the contract documents.
Most policies exclude predictable or design-related losses such as faulty workmanship, defective design, and wear and tear. They may also sublimit higher-risk perils such as flood, earthquake, or wind. Those exclusions are where coverage gaps tend to surprise contractors. The contract also decides who buys the policy and who absorbs the deductible. On many public jobs the owner provides builder's risk while the contractor carries its own general liability. Getting the insurance requirements right before you bid avoids coverage gaps and surprise premium costs. Nonlinear extracts insurance requirements, including builder's risk, from the bid documents during Spec Takeoff so contractors can confirm what coverage the contract demands and price it accurately.
