What does Builders Risk Insurance primarily cover?

Builders Risk Insurance is a specialized form of property insurance that primarily provides coverage for buildings under construction. It protects against risks that can lead to loss or damage to the structure during the construction phase. The correct answer focuses on specific perils such as fire, vandalism, and similar risks, which are common threats that can impact a construction project.

This type of insurance is tailored to address the unique exposures associated with construction, such as the increased likelihood of damage from hazards like fire and vandalism, ensuring that the project can continue without significant financial loss. Other options presented, like theft of equipment or liability for injuries, are important aspects of construction risk management but fall under different types of insurance. Property damage from natural disasters may also be covered under separate policies or endorsements rather than being the primary focus of Builders Risk Insurance.