B. Definitions 1. It consists of a simple broad statement of policy coverage followed by a complex series of definitions and exclusions limiting coverage.
Endorsements are available to close the gaps of coverage created by some of the exclusions.
These coverages generally protect all property owned or leased by the contractor, including all tools, equipment, machinery and materials on the project site. Completed or partially completed buildings may also be protected under these policies. However, property stored off site is often excluded from coverage. For this reason, many contractors attempt to provide on-site storage facilities, so that stored property will be covered under their builder's risk policy. A separate form of coverage, known as an installation floater policy, is also available to insure equipment to be installed in transit, or in storage at the site until it is installed in the project.