Introduction to Commercial Inland Marine-Introduction to Commercial Inland Marine: Builders Risk

Video Transcription

Video Summary

The Inland Marine Underwriters Association (IMUA) class, led by instructor Cody Williams, offers a comprehensive introduction to Builder's Risk insurance—a vital coverage in the inland marine insurance sector focusing on protecting buildings and structures during construction. Builder's Risk is crucial due to the ongoing construction demand, resiliency of the industry even during economic downturns like COVID-19, and significant government investments, such as the 2021 Infrastructure Investment and Jobs Act which funded roads, bridges, public transit, broadband, ports, energy grids, and water infrastructure.<br /><br />Builder's Risk policies cover direct physical loss or damage to buildings and materials intended for permanent installation during the construction period, including materials stored on-site or in transit. Key concepts include understanding policy terms and coverage forms—ranging from standardized ISO and AAIS forms to proprietary and manuscript wordings that can tailor coverage to specific risks. Coverage extensions such as debris removal, building ordinance upgrades, escalation provisions to account for cost increases, temporary storage and transit, equipment breakdown (including hot testing), loss of rental income, soft costs, and permission to occupy are discussed in detail.<br /><br />The course emphasizes the importance of underwriting based on detailed submission documents like applications, construction schedules, budgets, site plans, geotechnical reports, hot work programs, and water mitigation plans to assess risks accurately and price policies appropriately. Differing construction types are explained, highlighting fire risk from high for frame construction to low for fire-resistive buildings.<br /><br />Common policy exclusions include land, faulty workmanship, flood, and consequential losses, with coverage typically on an open peril basis except for specified exclusions. The class also covers when coverage ends, generally upon project completion, acceptance, or policy expiration.<br /><br />Using real-world examples and loss videos, Cody illustrates risks such as fires and collapses, underscoring the significance of contractor expertise and risk management. Overall, the class equips underwriters to navigate the complexities of Builder's Risk insurance by mastering policy nuances, risk exposures, and underwriting best practices in a dynamic construction environment.

Asset Caption

Date of Publication: December 11, 2025
Duration: 2 hours 17 minutes

Instructed by Kodi Williams, Assistant Vice President, Engineered Risk, Sompo International, North America

Meta Tag

Module Introduction to Commercial Inland Marine

Keywords

Builder's Risk Insurance

Construction projects

Policy terms

Safety net

Unexpected losses

Contractors

Owners

Developers

Underwriting

Construction type

Materials

Risk factors

Coverage limits

Soft costs

Loss of rents

Inland Marine Builders' Risk Insurance

Cody Williams

construction environment

IMUA policy

coverage types

construction terms

Infrastructure Investment and Jobs Act

construction risks

underwriting specifics

geotechnical report

coverage exclusions

equipment breakdown

natural catastrophes

insurance market dynamics

Inland Marine Underwriters Association

IMUA

inland marine insurance

construction insurance

policy coverage

ISO forms

AAIS forms

policy exclusions

underwriting process

construction risk

loss prevention

risk management