- Builder's risk (construction all-risk)
- Property insurance covering physical loss or damage to a structure, its materials, and equipment during the construction period, from foundations to substantial completion. Written on an all-risk basis, it covers loss from any cause except those specifically excluded.
- Delay in start-up (DSU)
- A companion coverage to builder's risk that insures the financial consequences, lost revenue and continuing costs, of a covered physical loss that pushes back a project's planned start date. Critical where long equipment lead times turn a physical loss into a schedule catastrophe.
- Loss payee and additional insured
- Designations that direct the benefit of coverage to the lender. As loss payee on property policies, the lender receives claim payments so they rebuild the collateral; as additional insured on liability policies, the lender is protected against third-party claims.
- Performance and payment bonds
- The two surety bonds common on large construction. The performance bond guarantees the contractor completes the work; the payment bond guarantees subcontractors and suppliers are paid, preventing liens that would cloud the project's title.
- Risk transfer
- The movement of a specific risk from a party that cannot bear it to a diversified market that can, via insurance or surety. In project finance it is the mechanism by which lenders lend into uncertainty without owning it, and the foundation of insurability as a siting constraint.
- Sum insured
- The value for which a policy is written. Builder's risk should be set at the full completed value including materials, equipment, and soft costs; writing it below that value leaves a shortfall after a loss and may trigger average conditions that reduce payouts proportionally.
- Surety bond
- A three-party guarantee, principal, obligee, and surety, in which the surety backs the principal's performance of an obligation. If the principal fails, the surety makes the obligee whole and then seeks reimbursement from the principal, making it a credit guarantee rather than pooled insurance.
- Title insurance
- Insurance protecting against defects already existing in the ownership history of land, hidden liens, forged deeds, easement problems, or recording errors. A lender's title policy insures the validity and priority of the lender's security interest, and is a standard condition of closing.