Builder’s risk insurance covers the project itself—buildings under construction, materials, and certain soft costs—regardless of whether the work is performed by you or your subcontractors. However, the details are critical. Many policies protect the financial interests of the owner and prime contractor first, and do not automatically extend full protection to every subcontractor’s property or interests.
Key Questions We Help You Clarify
- Who is an insured? We confirm whether the policy includes “contractors and subcontractors as their interests may appear” or specifically names subs as additional insureds on the builder’s risk policy.
- What property is covered? Most policies cover the structure, temporary works, and materials on-site or in transit. Subcontractors’ tools and equipment are often excluded or only minimally covered.
- Whose policy responds? If the owner carries builder’s risk, we ensure your contract and the policy align. If you, as GC, carry it, we align subcontract agreements and additional insured status to eliminate gaps.
- What is not covered? Builder’s risk does not replace your general liability or your subcontractors’ GL and workers’ compensation for bodily injury or third-party property damage arising from construction activities.
How Liberty Protects Your Project
Liberty’s construction team reviews your builder’s risk wording alongside your subcontracts so you know exactly how subcontractor work and materials are treated—and where you need separate coverage or contract language to close gaps.