How builder's insurance actually works
Eight coverages cover almost everything a building business does. They are not interchangeable and they are not alternatives to one another, which is the first thing to understand. Here is what each one answers.
Third party injury and property damage caused by your operations.
Medical care and lost wages for your own injured employees.
Vehicles used in the business, including owned, hired and non owned.
Your tools and equipment against theft, damage and loss.
The project under construction, plus materials on site.
A guarantee of performance or payment, not a transfer of risk.
Extra limits above your underlying policies once those are used up.
Claims from design work and advice, which general liability excludes.
Start with what your contract requires, because that is what will be checked. Then add what your state requires, because that is what will be enforced. Then add what your own balance sheet cannot absorb, which is usually tools and a vehicle. Most builders end up with four coverages, not eight.
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Tell us what you build and where. A licensed specialist will answer with specifics, not a brochure.
