Builder's risk covers the project
Builder's risk protects the building under construction and the materials on site or in transit, against things like fire, wind, theft and vandalism. It usually starts when work begins and ends when the project is finished or occupied.
General liability covers harm to others
General liability pays when your work injures someone or damages someone else's property, like a passerby hurt by falling debris or water damage to a neighbor's unit. It doesn't pay to repair the project you're building.
Who buys builder's risk?
It depends on the contract. On many residential builds and remodels the owner buys it, and on many commercial jobs the general contractor does. Lenders often require it for construction loans.
Most contractors need both
Along with a contractor bond and commercial auto, these are the core of a contractor's insurance. We place them together so the dates and limits line up.