Does Builder’s Risk Insurance Cover Negligence?

Builders risk insurance can cover a lot of hazards. These may include:

• Theft and vandalism
• Certain weather-related hazards, such as hail and lightning
• Fire and explosions
• Vehicles crashing into the structure

Extended policies may even cover your scaffolding and other temporary structures used in construction, and charges from the fire department.

However, you will need a general liability policy to cover you against everything that your builders risk insurance will not. These hazards include:

• Injuries on your property
• Damage to rented commercial space
• Damages or injury caused by you or your team

Negligence is a major concern in construction. But negligence can be a little confusing when it comes to insurance. Builders risk insurance may cover negligence while, at the same time, listing negligence as an exclusion in certain circumstances.

Generally, you can expect that your policy will cover damages caused by negligence. However, certain other costs may be incurred owing to a contractor’s negligence, and your insurance policy may or may not cover these costs.

You will need both construction general liability and builders risk protection to cover your end when working on a construction project. Each policy can generally be expected to cover the gaps left by the other. However, this will still leave a few areas where you are not protected, such as:

• Earthquakes
• Floods
• Flawed workmanship
• Equipment breakdown
• Construction vehicles

Your best bet for making sure that you are protected is to make sure that you understand your policy. Read it through carefully, and if you have any questions, call your agent to make sure that you understand it. If there are any major exclusions that leave you with gaps with which you are not comfortable, additional insurance can be purchased to cover most of these areas. There is a lot at risk in a construction project, and adequate coverage is of vital importance.

Also Read: How To Reduce Your Vulnerability To Liability Claims