One disadvantage of a single builders risk policy is that:

A single builders risk policy is designed to provide coverage for construction projects, typically providing protection for the structure while it is being built. One significant disadvantage is that mistakes made during the course of the project may lead to voiding coverage not just for the party that made the mistake, but for all insured parties under that policy. This means that if there are any errors in procedures or compliance with regulations, it could jeopardize the coverage for the entire project, leaving all insured parties exposed to potential financial loss.

This characteristic emphasizes the need for clarity and diligence in managing the construction project under this type of policy, as one misstep can impact all stakeholders involved. It's crucial for everyone involved to understand the terms of the policy and ensure that all actions taken during the project adhere to those terms to maintain coverage. This risk makes the single builders risk policy less appealing to some contractors and builders who may prefer arrangements that limit the impact of any individual party's errors on the coverage of the entire project.