Which term refers to insurance for loss or damage to a building under construction?

• A. Builder's Risk
• B. Comprehensive Policy
• C. Protective Liability
• D. Subrogation

Answer: (A)

The term refers to insurance for loss or damage to a building under construction is Builder's Risk. This coverage is specifically designed to protect a project during construction from hazards like fire, wind, vandalism, and theft of materials and equipment on site. It can apply to the structure, with materials, and often includes temporary structures and sometimes contractor-owned equipment, and it typically ends when the project is completed and an occupancy permit is issued unless the policy is extended for delays or soft costs. The other terms don’t fit this scenario: a comprehensive policy covers general property and casualty needs for existing buildings, not the unique risks of a project under construction; protective liability relates to third-party injury or damage rather than the building itself; and subrogation is the insurer’s process of pursuing recovery from a third party after paying a claim, not a type of construction insurance.