The biggest nightmare for a subcontractor is accidental damage that he or an employee causes on a job site. The general contractor that hired you will probably tell you to let your general liability insurance take care of paying to fix the damage, but you really don’t want that mark going against your policy. Fortunately, knowing the builders risk insurance vs general liability insurance differences can help you avoid this potential dilemma. It can also help you avoid making claims against your policy that have the potential to increase your premiums.

Which Policy Offers What?

In contracting situations like the one mentioned, a builder’s risk insurance will be carried by the developer, general contractor, or homeowner. These protect structures during the construction phase, as well as covering items like equipment or building materials. Depending on how the policy was written, it could also protect from damage or loss that is incurred through

  • Weather events
  • Fire
  • Theft or vandalism

On the other hand, the experts at SB One Insurance explain that a general liability policy is often required both for contractors and subcontractors. This a safeguard policy, because a general contractor could be held liable when a third party alleges that your actions or business caused:

  • Bodily Injury
  • Property Damage
  • Advertising Injury

In the event of an accident or damage, always call your insurance provider right away. Report what they say to the general contractor, and move forward from there.