What is an example of a supplemental coverage expense for Builders Risk?

A fire department service charge is considered a supplemental coverage expense under a Builders Risk policy because it is an additional expense that can arise if a fire occurs on the construction site. Builders Risk coverage primarily protects the structure being built and any materials on-site, but it may also include certain additional costs related to emergencies that can happen during the construction phase.

When a fire department responds to a fire at the construction site, the property owner may incur a service charge for that response. This differs from typical expenses like property taxes or utility expenses, which are standard operating costs not specifically tied to the unique risks of the construction phase. Whereas instructor fees refer to training or education, which is not directly related to the property or project's risk exposure, these other costs do not serve the same purpose as supplemental coverage. Thus, the fire department service charge effectively exemplifies how supplemental coverage can address unforeseen costs associated with damages or incidents on a construction site.