Builders’ Risk vs. General Liability is an important distinction to be made when it comes to insurance coverage. Knowing the differences between these two types of policies is essential to cover your company adequately. 

In this blog post, we will tackle the distinct features of Builder’s Risk and General Liability Insurance.

1. Coverage

Builder’s Risk Insurance is designed to cover a specific project, such as constructing a new building or renovating an existing one. General Liability insurance, on the other hand, provides a business’s legal liability coverage for a wide range of liabilities that could arise from its operations.

Builder’s Risk Insurance covers only the physical property and materials associated with a specific project, such as the building itself, the equipment used to construct it, and the materials used in construction. General Liability insurance, however, covers a broader range of liabilities, such as personal injury, advertising injury, and property damage.

2. Exclusions

Another difference between Builder’s Risk and General Liability insurance is the exclusions in each policy. Builder’s Risk policies typically exclude coverage for damages caused by faulty craft, defective materials, or subcontractor negligence. General Liability policies, however, often exclude coverage for professional services and product liability.

3. Cost

Builder’s Risk policies are typically more expensive than General Liability policies. This is because Builder’s Risk offers more comprehensive coverage and is designed to cover many risks associated with construction projects.

4. Duration

Builder’s Risk Insurance is usually purchased for the duration of the specific project it covers, while General Liability Insurance typically covers business operations on an ongoing basis.

5. Deductibles

The deductible is another difference between Builder’s Risk and General Liability policies. Builder’s Risk policies usually have higher deductibles than General Liability policies.

6. Risk Assessment

Builder’s Risk policies require assessing the project’s risk to determine the right amount of coverage. General Liability policies, however, are usually purchased with a predetermined coverage limit.

7. Additional Insureds

Builder’s Risk policies typically cover additional insureds, such as subcontractors and suppliers. General Liability policies, however, usually exclude coverage for additional insureds.

8. Claims Process

Claims for Builder’s Risk Insurance are typically handled more quickly since the policy is designed to cover a specific project, and the claims process is usually simpler. Claims for General Liability insurance can take longer to process since the policy covers a broader range of liabilities.

9. Claims Limit

The claims qualify for Builder’s Risk insurance is typically higher than that of General Liability insurance since it covers fewer liabilities than the latter.

How to Know if You Need Builder’s Risk Insurance or General Liability Insurance

Once you understand the difference between builder’s risk insurance and general liability insurance, you can decide which type of policy is right for you. If you are planning a construction project, consider getting builder’s risk insurance to cover the physical property being built, renovated, or altered. On the other hand, if you are running a business, you should consider getting general liability insurance to cover any liabilities arising from operations.


Ultimately, deciding between builder’s risk insurance and general liability insurance depends on your needs. To ensure that you have the right coverage for your business, it’s essential to speak with an experienced insurance professional who can help you determine the best policy for your situation. 

Pascal Burke Insurance Brokerage Inc. is the perfect choice for insurance needs. With our array of policies covering not only general cases but specialty contractors, our clients can find the ideal policy for their business or family. Our experienced brokers are available to answer any questions you may have and provide the best possible coverage for your unique needs. Contact us today and let us assist you in covering Builder’s Risk and General Liability Insurance in Philadelphia.