It typically covers the work in place plus materials at the site, in transit, and in off-site storage, and coverage usually ends when the project is complete and accepted. There's no single standard form, so terms vary widely and the named insureds — owner, contractor, subcontractors — are negotiated in the contract documents.
Most policies exclude predictable or design-related losses — faulty workmanship, defective design, wear and tear — and may sublimit higher-risk perils such as flood, earthquake, or wind, which is where coverage gaps tend to surprise contractors. The contract also decides who buys the policy and who absorbs the deductible, and 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 both coverage gaps and surprise premium costs. Nonlinear extracts insurance requirements, including builder's risk, directly from the bid documents during Spec Takeoff, so contractors can confirm what coverage the contract demands and price it accurately.
