Construction projects carry inherent risks, ranging from natural disasters to contractor negligence. Builder’s Risk & Construction General Liability Insurance Coverage offers protection against such risks and can be invaluable in mitigating the associated financial losses. 

This guide will provide an overview of Builder’s Risk & Construction General Liability Insurance Coverage, helping you determine if this coverage is right for your business and project. 

What is a Builder’s Risk Insurance? 

Builder’s Risk Insurance is a type of property insurance designed to cover buildings and other structures under construction. This coverage can include theft, vandalism, accidents, and damage to completed forms due to faulty construction or mechanical breakdowns. 

The cost of this policy typically depends on factors such as the size and type of building project, the site’s location, and what kind of materials are being used. This provides peace of mind for the property owners and constructors, as they are protected financially should any damage occur during construction. 

Who Needs Builder’s Risk Insurance?

Builder’s Risk Insurance is mainly used by builders, contractors, developers, and property owners planning a construction or renovation project. The party typically purchases it with an ownership stake in the property. However, parties involved in the project, such as general contractors, subcontractors, and materials suppliers, may also be named on the policy.

It should be noted that Builder’s Risk Insurance does not cover losses due to faulty quality or negligence on the part of those working on the project. It is vital to ensure that any projects involving renovations or construction are adequately covered to avoid costly losses in the event of a mishap.

What Does Construction General Liability Insurance Cover?

Construction General Liability Insurance is a type of insurance policy that provides coverage in the event a construction project causes damage to someone else’s property or results in a person sustaining an injury. This type of insurance coverage generally covers legal costs if you are found liable, pays for medical expenses, and can also provide compensation for lost wages if someone sustains an injury while on your premises.

Who Needs Construction General Liability Insurance?

This type of insurance is typically required by many state regulations and local building codes and is vital for anyone working in the construction industry. Contractors who work with government entities such as municipalities and municipalities may be required to carry these forms of coverage to become officially certified, so it’s essential to verify what requirements are necessary before taking on a job.

The Difference Between Builder’s Risk & Construction General Liability Insurance

Builder’s Risk and Construction General Liability Insurance Coverage differ in their scope of protection. Builder’s Risk Insurance is designed to reimburse insureds for covered loss or damage to property under construction, including the structure, materials, fixtures, and supplies related to the construction project. 

Construction General Liability Insurance, on the other hand, provides coverage for claims alleging bodily injury arising from construction operations. It includes protection against claims such as negligence resulting in property damage or bodily injury; personal/advertising injury; costs associated with defending a claim; and certain medical expenses if someone is injured while working on the site.  


Understanding the different coverage types and what they cover is essential to ensure you have the correct insurance for your project. Doing this will give you peace of mind knowing you are protected from unexpected financial losses due to unforeseen events. 

Are you looking for builder’s risk insurance in Louisiana? Check out Pascal Burke Insurance Brokerage Inc.! Safeguard your unfinished structure from being broken into, set on fire, or damaged structurally. Our expertise extends to insurance policies protecting standard businesses and specialized contractors. Call us today!