The Difference in Insurance Policies for Builders

When it comes to insurance options in the construction and building industry, the different options available can be confusing to understand. There are various terms that appear to mean the same thing, but may in fact provide wholly different coverages. One example of this applies to the builder’s risk vs property insurance. Let’s explore some common insurance phrases and what they each mean.

Property Insurance

This is a more general term that often has a broad meaning, but typically involves protection from loss of a building or structure. There can be subsets of these policies, for example, flood and earthquake insurance. In some cases, there is also a liability component if someone is injured on the property.

Builders Risk

Builders’ risk policies are a specific type of property insurance meant for contractors during the period of time a building is under construction. As SB One Insurance Agency explains, it usually covers property losses – including materials and equipment – that occur during that timeframe. The cause can be due to theft, vandalism, fire and many environmental conditions.

General Liability

This insurance addresses claims of injury and property damage specifically due to the actions of you or people in your employees while working on job sites. It would not provide coverage for loss of materials or equipment, which is why a builder’s risk policy is often obtained as well.