Builders risk policies (and the projects they cover) are typically available for ground-up new construction, remodeling (including or excluding the existing structure) and installation.
These projects are classified as either a residential or commercial risks. The definition of those categories changes from provider to provider. Residential builder's risk plans usually recognize a residential project as structures from 1-to-4 family homes (whether the work performed involves ground-up construction, renovation or installation). Commercial projects are far more varied, covering anything from office buildings to wind turbines to multimillion-dollar sports arenas.
Builders risk is designed to protect construction sites from loss and damage. While exact coverages and limitations vary between providers, comprehensive builders risk policies may offer coverage for theft and vandalism, as well as additional coverages including (but not limited to) soft costs, flood, windstorm, earthquake, ordinance and law, and business income and extra expense. Policies may also cover damage to construction material, temporary structures, fencing, scaffolding, subdivision signs and landscaping.
Builders risk policies alone, however, do not typically cover liability (for accidents and injuries in the workplace). Stand-alone liability insurance may be secured in addition to policies without, however.