UK builders and developers often see the terms course of construction insurance and builders risk insurance used as if they were different products. In practice they describe the same idea: insurance for a building project while it is under construction. This guide explains the terminology and how both relate to the UK's contract works and contractors all risks cover, rather than picking a winner, using Association of British Insurers and GOV.UK sources. Kael Tripton does not provide quotes, does not route enquiries to brokers, and does not earn commission from any provider mentioned.
Key Facts
- A contract works policy covers the works themselves and unfixed goods and materials on site for incorporation into the works, usually on an all-risks basis (ABI, accessed June 2026).
- Course of construction and builders risk are alternative names, more common internationally, for insurance of property during construction (ABI, accessed June 2026).
- In the UK the equivalent cover is generally called contract works or contractors all risks (ABI, accessed June 2026).
- Cover usually runs for the construction period and can be extended to the defects liability period (ABI, accessed June 2026).
- Construction projects commonly also need employers' liability, public and products liability, and sometimes professional indemnity (ABI; GOV.UK, accessed June 2026).
At a glance: course of construction vs builders risk
| Attribute | Course of construction | Builders risk |
|---|---|---|
| What it is | Cover for property during construction | Cover for property during construction |
| Term origin | International and US usage | US usage |
| UK equivalent | Contract works / contractors all risks | Contract works / contractors all risks |
| Typical cover | Works, materials, often plant | Works, materials, often plant |
| Cover basis | Usually all-risks | All-risks or named perils |
| Cover period | Construction, can extend to defects period | Construction period |
| Who arranges | Owner or contractor | Owner or contractor |
What course of construction insurance is
Course of construction insurance is a name for cover that protects a building project while it is being built. It typically insures the permanent and temporary works, the materials and goods to be incorporated, and often the plant and equipment on site, against physical loss or damage during the construction period. The term is used widely in international and US-influenced markets and on larger or cross-border projects.
The substance of the cover is what UK insurers usually call contract works or contractors all risks. The ABI describes a contract works policy as covering the works themselves and unfixed goods and materials on or adjacent to the site for incorporation into the works, generally written on an all-risks basis. That all-risks structure means the insurer must show a loss falls under an exclusion to decline a claim.
What builders risk insurance is
Builders risk insurance is the US term for the same concept: insurance for a structure while it is under construction or renovation. It covers the building work and materials against loss or damage during the build, and may be written on an all-risks or a named-perils basis depending on the market and policy. The phrase appears often in UK searches because of US sources and software, even though UK insurers rarely brand a product as builders risk.
In the UK, a builder or developer looking for builders risk cover is generally looking for a contract works or contractors all risks policy. The cover insures the project assets during construction and can sit alongside the liability covers a project needs.
How the cover differs
The honest answer is that course of construction and builders risk are two names for materially the same protection, not two competing products. The differences are mostly terminological and stylistic rather than substantive. Where genuine differences arise, they are in the policy structure rather than the label: whether cover is all-risks or named-perils, whether it includes plant and temporary works, and whether it extends into the defects liability period after practical completion.
A more meaningful UK distinction is who arranges the cover and what it includes. On a new build, the contractor often arranges contract works cover. On an alteration or extension, the ABI notes that both the existing structure and the works should be insured, which affects whether the property owner's buildings insurer or the contractor's policy responds. Reading the policy to confirm the works, materials, plant, existing structure, and cover period are all addressed matters far more than the name on the cover.
How the cost differs
Premiums depend on the project value, type of works, duration, location, and risk controls such as fire and security measures, so there is no single price for either name. Whether a policy is called course of construction, builders risk, or contract works does not by itself change the cost; the scope, sum insured, and risk profile do. Check policy schedules and FCA-authorised brokers for live terms rather than relying on a single figure.
Who course of construction cover suits
Developers, principal contractors, and project owners, particularly on larger or internationally financed projects where the term is commonly used by lenders, funders, and contracts.
Who builders risk cover suits
UK builders and homeowners who have encountered the term through US sources and are seeking project cover. In the UK, they should ask for contract works or contractors all risks cover to match the local market.
When you need both
You do not need both, because they are the same cover under different names. What a project genuinely needs is a single appropriate contract works or contractors all risks policy, alongside the separate liability covers, employers' liability where staff are employed, public and products liability, and professional indemnity for design work, that a construction project typically requires.
Frequently asked questions
Are course of construction and builders risk the same thing?
Largely yes. Both terms describe insurance for property during construction. Builders risk is the US term and course of construction is an international name; the UK equivalent is contract works or contractors all risks.
What is the UK name for builders risk insurance?
In the UK, the cover is generally called contract works or contractors all risks. A builder seeking builders risk cover should ask UK insurers for one of these products.
What does contract works insurance cover?
It typically covers the works themselves and unfixed goods and materials on site for incorporation, usually on an all-risks basis. Cover runs for the construction period and can extend to the defects liability period.
Who should arrange the cover on a project?
It depends on the contract. On a new build the contractor often arranges it, while on an alteration or extension both the existing structure and the works should be insured, which may involve the owner's buildings insurer.
Do I need other insurance alongside it?
Usually yes. Construction projects commonly also need employers' liability, public and products liability, and professional indemnity for any design work, which are separate from the contract works cover.
How do I check an insurer or broker is authorised?
Search the firm's name or reference number on the FCA Register at register.fca.org.uk. Cover is sold by FCA-authorised insurers and brokers, and eligible disputes can be referred to the Financial Ombudsman Service.
