Is General Liability Insurance for Contractors included in Builder’s Risk?

General Liability Insurance for Contractors is not included in a Builder’s Risk policy.  These two types of insurance serve very different purposes.  Both are very valuable for your construction business.

Insurance is an investment in the future sustainability of your business.  When it comes to liability claims, these can run into millions.  Without coverage your company is unlikely to survive.  Builder’s Risk insurance also protects your investment.  It ensures that if a loss event occurs, you have the means to continue with your project.

What is Builder’s Risk Insurance?

Specialized coverage, some of the properties of Builder’s Risk Insurance are:

• It is property coverage
• 100% of the replacement cost of the building at completion is the value of a policy
• It is term insurance and is generally 3, 6 or 12 months long
• It has a start date and an end date, with other conditions that can mark its cessation
• Also known as Course of Construction Insurance, it covers you for the duration of construction
• It covers the cost of construction as well as the equipment used
• Tailored for you, it typically covers loss due to fire, theft, vandalism, and weather events
• There are many other loss events you can include if they are applicable to your project
• This insurance is not mandatory but many clients will only appoint you if you have it

What is General Liability Insurance for Contractors?

In contrast, liability covers you if sued for negligence that results in damage to another person or causes them bodily injury.  It also covers the costs of your legal defence.  The damages covered by General Liability are:

• Bodily injury – this is physical injury to another as a result of your actions
• Property damage – accidental damage to the property of another in the course of your work
• Advertising mistakes – damage you cause to another person as a result of your advertising, for example through copyright infringements
• Damage to reputation – damage you cause to another person or company, for example through slander or libel
• Medical payments – medical care costs if injury to a person at your work premises occurs

General Liability Insurance is mandatory.

Does your construction company need other coverage?

It is important to note that neither General Liability or Builder’s Risk Insurance covers employees if they are injured in the course of their work. Employees are covered by Workers Compensation.  It covers medical care costs and assists with loss of income when an employee cannot work as a result of their injury. This coverage is mandatory and if you do not have it and an employee is injured, you will face penalties.

General Liability Insurance for Contractors is Not All You Need

General Liability is very necessary for your construction company.  As discussed, however, it only covers you for some of the risks you face.  At Builder’s Risk.net we can write you a Builder’s Risk policy that protects your financial investment in your project. Call Builder’s Risk at 877 960 0221 and get the right coverage at the lowest rates.