Builders Risk Answer

Does Builders Risk Cover Theft?

Yes — theft of materials and installed equipment is a standard covered peril on most builders risk policies. Here’s what’s covered, what sub-limits apply, and the one exception that surprises most contractors.

• ✓Third-party theft of materials and installed equipment: covered
• ✓Employee theft: excluded — requires separate crime policy
• ✓Sub-limits often apply — verify your policy’s theft limit
• ✓Materials in transit and off-site may have separate limits

The Direct Answer

Yes, builders risk insurance covers theft. Theft by third parties — strangers who access your job site and steal materials, equipment, or installed property — is a standard covered peril on virtually every builders risk policy. This coverage is one of the most valuable parts of builders risk for active construction projects.

What gets stolen on construction sites varies but the losses are real and significant: lumber, copper wiring, HVAC equipment, plumbing fixtures, appliances, tools, and anything else that can be carried off. A single weekend of theft on an unattended job site can cost $20,000–$80,000 or more.

Important exception: employee theft is excluded. If one of your workers takes materials, that’s not a covered builders risk claim — it requires a commercial crime policy with employee dishonesty coverage. This distinction catches contractors off guard.

Sub-limits: Many builders risk policies apply a sub-limit specifically to theft — often $25,000–$100,000 per occurrence, which may be lower than the overall policy limit. We always verify the theft sub-limit against the value of materials staged on your site.

Theft at Different Coverage Points

Builders risk extends theft coverage across the property locations specified in the policy. Understanding where coverage applies helps you manage your actual exposure:

On-site theft: Standard coverage — materials, installed equipment, and fixtures on the job site.

Materials in transit: Coverage while materials are being delivered — typically included with a sub-limit.

Materials off-site: Coverage for materials temporarily staged at a warehouse or yard — may require a specific endorsement and has its own sub-limit.

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