Most shop owners have the contents of their shop, employees property and the company assets insured under an aggregate insurance policy, these policies are cost effective, but in the event of a total loss, may not cover 100% of everything. Shop owners require their customers have their vehicles insured while at the shop to cover all the costs of their project vehicle. The worst case scenario of the shop burning down and nothing is received is not that uncommon. Protect your investment, have it appraised!
A car might move from shop to shop during the course of a buildup. Even if the primary shop has adequate insurance, a subcontracted shop (such as the paint shop or the upholstery shop) may not. This is another reason why it's smart to be covered during the build. In addition to keeping your insurance company up to date on the value of the vehicle, keep them informed about where your car is being built, and where it will be going. Keep an inventory of the parts and pieces you own that are at a pro shop or your own shop-not just the car itself, but the engine on a stand, the front end over in a corner, the various parts in boxes, you name it.