What aspect of construction does builders risk insurance cover?

Builders risk insurance is specifically designed to cover property damages that occur during the construction phase of a building project. This type of insurance helps protect the investment in the construction project by covering damages to the structure itself, as well as materials and equipment that are part of the construction, from various risks such as fire, theft, vandalism, and certain natural disasters.

This coverage is crucial for ensuring that if an unexpected event damages the construction site, there are funds available to repair or replace what has been lost, keeping the project on track and within budget. Having builders risk insurance in place is essential for contractors and property owners, as it alleviates concerns about financial loss due to unforeseen incidents while the project is still in progress.

The other choices do not pertain to the primary purpose of builders risk insurance. Liability for worker injuries is typically covered under workers' compensation insurance, accidents that occur onsite may involve different types of liability insurance, and general operational costs are not covered by builders risk insurance as they pertain to ongoing business expenses rather than specific liabilities related to the construction project itself.