Notable Differences Between Builders Risk and General Liability

Builders Risk vs General Liability

Construction continues to be a necessary part of the economy. Companies continue to grow and renovate, build new developments or tear down an existing structure. To properly cover liabilities, construction companies need to understand the difference between builders risk vs general liability.

Who’s Covered?

As referenced on, a builder’s risk policy focuses on a specific area or building the company is working on. Contractor’s general liability focuses on damages to third parties rather than a specific structure. The main difference is who owns the property, the insured or someone else?

What’s Excluded?

A general liability policy excludes property damages the insured sustains to their work, products or property. Builder’s risk often excludes damages caused by natural disasters, dishonest employees or theft. The policy also tends to terminate at the conclusion of the project.

Who’s Responsible?

The company generally is responsible for having a contractor’s general liability policy. Builder’s risk is not always clear cut. Depending on the project, the liability may fall on the general contractor, owner of the project or the land developer. Double-check the contractual agreement to ensure your work, property and business is insured.

There are some big differences between builders risk vs general liability. Many projects require both types of policies to adequately cover the project risks.