Understanding Builder’s Insurance: What It Covers and What It Won’t

If you work as a general contractor in the construction industry, you need to know what your insurance can do and what it can’t, and you probably need more than one type of insurance. Unless you have a total business policy that combines both your builder’s risk insurance and your general liability coverage, along with other important policies like your business vehicle policies and property insurance, you will need to find an insurer for both your builder’s risk policy and general liability.

Does Builder’s Risk Insurance Cover Negligence?

No, and that’s why you need general liability insurance in addition to it. General liability policies take care of your liability against negligence on the part of your management or laborers, as well as liability protection for a variety of areas your business needs to cover. By contrast, builders risk insurance is designed to cover these situations:
Contractual penalties

Weather damage, including extreme weather events
Damage due to faulty materials or workmanship
Government actions
Mechanical breakdowns
Find Your Policy

The best way to simplify your insurance needs is to work with providers who understand the totality of your company’s insurance coverage requirements. Of course, that only works if you keep them up to date as your needs change. When that happens, you need to contact a provider like SB One Insurance to update your coverage.