Coverage Comparison
Builder's Risk vs. General Liability for Contractors
Two coverages that work together on every construction project. Understanding the difference protects your work and your business.
Builder's Risk
Covers physical damage to the building or structure under construction, including materials and equipment on site.
Protects Against
- The structure being built
- Building materials on site
- Equipment and fixtures being installed
- Soft costs (architect fees, permits) if delayed
- Temporary structures and scaffolding
General Liability
Covers third-party bodily injury and property damage claims arising from your construction operations.
Protects Against
- Injuries to third parties
- Damage to neighboring properties
- Completed operations claims
- Advertising and personal injury
- Medical payments
Real-World Examples
Builder's Risk Claims
- A fire damages the half-built structure
- Storm destroys materials stored on site
- Vandals damage the building overnight
- A crane drops equipment through the roof
General Liability Claims
- A passerby is hit by falling debris
- Your work damages the neighbor's property
- A subcontractor is injured on your site
- Work you completed years ago causes damage
Key Differences at a Glance
When You Need Both
- You're the general contractor responsible for the entire project
- Your contract requires you to carry both coverages
- You have significant materials/equipment investment on site
- The project owner doesn't carry Builder's Risk (you need your own)
Frequently Asked Questions
Who typically buys Builder's Risk — the owner or the contractor?
It varies by project. Often the owner purchases it to cover their investment, but contracts may require the GC to provide it. Always check your contract. If the owner has it, get a certificate showing you're covered.
Does Builder's Risk cover my tools and equipment?
Usually not. Builder's Risk covers materials that will become part of the structure. Your tools, machinery, and contractor equipment typically need separate Inland Marine or Equipment coverage.
What happens to Builder's Risk when the project is done?
Builder's Risk ends at project completion (or occupancy). The owner then needs permanent property insurance. Make sure there's no gap — coordinate the transition date with the owner's broker.
Not sure which coverage you need?
Talk to a Summit advisor. We'll review your business and recommend the right combination of coverages.
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