Pitfalls in Builder's Risk Insurance for Temporary Structures in Construction

This paper examines the fundamentals of some problems in builder's risk insurance for contractors when there are losses involving temporary structures in construction. Several case studies show the practical aspects of insurance claim settlement in such situations. While temporary structures used during construction are technically not covered by the builder's risk policy, it nevertheless behooves the contractor to be acquainted with some of the practical aspects of settling claims in case of loss. Also, such matters as loss prevention, deductibles, policy exclusions, and the principles of obtaining insurance on alteration projects are discussed. The paper is based on a speech given by the writer at the ASCE Seminar of the Metropolitan Section Construction Group on February 9, 1998.