How Builder’s Risk and Construction General Liability Vary
Working in the construction industry, you will know that there are certain policies you must carry to protect yourself and your projects. Generally, the first forms of coverage you will consider are builder’s risk insurance and construction general liability insurance. You can purchase these policies for varying time frames, and coverage ends when the project is complete. It’s useful to note that these two policies are not interchangeable.
Builder’s Risk Insurance
Builder’s risk insurance covers the contractor’s materials, equipment, and property related to the building being constructed. This insurance protects the contractor’s equipment, the value of property, and the materials while being used in the construction process. This policy also protects against perils such as theft, weather damage, water damage, mechanical breakdown, fire, vandalism, and more. You can opt to extend coverage to protect temporary surfaces such as scaffolding, coverage for debris removal costs, or charges made by the fire department service.
Contractors General Liability Insurance
Contractors general liability insurance will cover risks regarding bodily injuries or property damage. Note that it will not cover the contractor’s property or equipment. This policy is designed for a contractor’s unique liability coverage needs and protects against possible accidents and the liability that may arise from these.