Builders Risk Insurance is often used with a different term that describes what the insurance does - Course of Construction Insurance. Builders Risk Insurance covers specified physical damage to a building during construction and can be broadened to include building materials during the course of construction. Protection can be extended for the work of individual contractors, architects and engineers. Optional coverage can often be added for costs not directly related to construction such as marketing, loss of income and delayed completion.  Liability protection for the construction process is not included in a Builders Risk policy and in general needs to be purchased separately.