Builders Risk Insurance

Contractors beginning a project need two types of policies for comprehensive coverage.

Builders risk liability insurance can protect property accidentally harmed by a subcontractor. A general liability policy covers damages caused to third parties and may not fully cover property damage that occurs during your project. Filing a property damages claim on a builders risk policy keeps your general liability history clean, maintaining low premiums.

What is Builders Risk?

This type of insurance is temporary, specialized coverage that safeguards buildings under construction. It is crucial to have this for successful risk management on-site. It covers all property on a project during construction, including temporary structures such as scaffolding, materials and supplies.

What Does Builders Risk Cover?

This insurance typically protects against loss or damage caused by:

  • weather events
  • fire
  • explosions
  • vandalism
  • theft

Some policies may cover:

  • damage to temporary structures
  • disposal of pollutants
  • construction site changes required to meet environmental standards
  • costs related to construction delays

What is General Liability?

  • Unlike builders risk, general liability is ongoing coverage. It pays for injuries at a job site, third party property damage and slander or libel lawsuit expenses. This kind of policy does not cover a contractor’s property or equipment.

Builders risk insurance protects the contractor’s financial interest in the equipment, materials, and property value during a project.

The Basics of Builders Risk Insurance
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