Material prices fluctuate, subcontractor availability shifts, and catastrophic events—from floods to wildfires—can grind projects to a halt overnight. For many contractors, builders risk insurance has long been treated as another required policy to safeguard against losses tied to this volatility. That picture is changing.
The builders risk insurance market reached USD 5.36 billion in 2024, and insurers are rethinking what it means to cover today’s jobsites. Instead of stepping in after losses occur, carriers are using data, technology, and new risk models to help prevent them. That shift is raising expectations for contractors but also creating opportunities.
WHY RISK LOOKS DIFFERENT TODAY
Builders risk used to be fairly static. Policies were priced and written based on general project details and the assumption that some claims were inevitable. Today, underwriting looks more like data science. Insurers are applying predictive analytics to assess timelines, regional exposures, and even subcontractor reliability. Tools that score subcontractors for default probability are providing early warnings of instability, changing how coverage is structured.
At the same time, jobsite technology is reshaping expectations. Water-damage sensors, drones, and AI-enabled safety cameras are no longer viewed as “nice extras.” They are fast becoming baseline tools that demonstrate proactive risk management. Contractors who deploy them are not only preventing losses but also signaling to insurers that their jobsites are under control.
Even catastrophic risks are being reframed. Wildfire, once considered too unpredictable to insure, is now modeled as a core peril thanks to site-hardening strategies and localized predictive tools. Water mitigation, once an optional step in framing construction, is now required practice. These developments are making projects more insurable, but they are also raising the bar for contractors.
WHAT BUILDERS RISK CAN DO
For contractors, the practical impact is clear: Builders risk isn’t just paperwork anymore. It’s influencing how jobsites are run, how risks are controlled, and how projects stay on schedule.
Contractors can put their builders risk policy to work with these best practices:
Engage insurers early. Bring brokers and carriers into project planning to identify exposures upfront—from subcontractor reliability to CAT (catastrophe) preparedness—and secure better coverage terms before work begins.
Monitor in real time. Equip sites with sensors, drones, and AI-enabled cameras to catch problems before they escalate, from a leaking pipe to a worker skipping a harness. The payoff: fewer accidents, less downtime, and quicker fixes. Documented monitoring also gives contractors stronger footing if a claim arises, showing insurers that risks are being actively managed.
Catch defects before they’re built in. Use tools that integrate site video with BIM models to spot mistakes before they’re locked behind walls or systems. Early detection reduces costly rework, prevents disputes with owners, and lowers defect-related claims—all factors insurers consider when pricing and structuring coverage.
Build CAT preparedness into every project. Preventive steps like vegetation clearance in wildfire zones, water mitigation in framing jobs, and backup power in unstable regions should become standard practice. These measures don’t just check boxes for insurers; they keep crews working, projects moving, and reputations intact.
Document control at every step. Insurers and owners are looking for proof of accountability. By recording monitoring efforts, defect detection, and CAT protocols as part of daily operations, contractors create a record that can lead to faster claims handling, stronger coverage terms, and greater stakeholder confidence.
Leverage builders risk data across the enterprise. Aggregate insights from individual projects to refine subcontractor selection, strengthen bids, and scale risk-management practices across the portfolio.
BEYOND THE JOBSITE
Adopting these practices pays off twice with improved safety and quality, and project continuity in the field, building confidence with insurers, lenders, and owners. That confidence translates into better coverage, smoother financing, and stronger client relationships. The key is not to view builders risk as a box to check, but as a tool to demonstrate professionalism and discipline. A knowledgeable broker can help contractors align jobsite practices with insurer expectations, turning everyday risk management into a competitive advantage.
about the author
Kirk Chamberlain currently serves as an executive vice president, leading Top 5 construction insurance brokerage Hub International’s construction practice. Kirk’s background comprises more than 30 years of leadership roles within the construction and large capital projects sector as a broker, risk manager, underwriter and risk consultant, working with a wide range of public and private contractors, project owners and developers, and their legal and financial advisory teams. Kirk has led and managed service teams working on behalf of numerous clients in the heavy civil, street and road, general building, residential and municipal infrastructure sectors. He has also structured, placed and managed numerous wrap-ups and project-specific programs (CCIP/OCIP, MCIP, etc.) for multiple sponsors across a wide range of construction sectors. He sits on several private company and non-profit boards and is an advisory board director with a San Jose-based VC firm focused on developing and investing in emerging technologies targeting the construction and real estate development sectors.