Mitigating risk is one of the top concerns of builders, contractors and others in the construction industry. There are two types of insurance that protect your business from construction-related losses—builder’s risk and contractor’s general liability. These policies protect your building and materials from loss and provide you and your business with liability protection. But what are the differences between Builders Risk vs. Construction General Liability Insurance?
Overview of Builders Risk Coverage
Builders risk coverage protects construction equipment and materials during the construction phase of the project. This type of policy can be purchased by anyone with a vested interest in the construction including, the property owner, builder, contractor or investors. Builders risk protects the insured from claims related to:
Overview of Construction General Liability Coverage
Risks related to accidents, injuries and property damage are covered under a general liability policy. This coverage, purchased by a contractor or construction company, pays medical bills, legal bills, and the cost of repairs for negligence or liability claims related to accidents or injuries that occur at the construction site. Construction general liability protects the insured from claims related to:
- Customer property damage
- Libel, slander or copyright infringement
Talk to an insurance professional about the best ways to safeguard your construction business from liability and damages.