Does a General Contractor Need Builders Risk Insurance?
A general contractor needs builders risk when the construction contract makes it responsible for project coverage; the owner may buy it under other contracts.
A general contractor needs builders risk when the construction contract assigns it responsibility for project property coverage. Under other contracts, the owner buys the policy and includes the contractor’s interest; working on the project alone does not create insured status.
Read the prime contract, subcontracts, declarations, and endorsements together. Confirm who buys coverage, which contractors are insured, how work and materials are valued, who bears the deductible, and whether liability coverage is separately required.
Coverage Guides Related to Builders Risk Insurance
Sources for Builders Risk Insurance Answers
- Glossary of Insurance Terms. National Association of Insurance Commissioners; Builders’ Risk Policies. Accessed 2026-09-25.
- Commercial Insurance Guide. California Department of Insurance; Form 700, revised June 14, 2024: Commercial Property > Coverage Forms and Endorsements > Builder’s Risk; Inland Marine; How Can I Purchase Commercial Insurance?; What Should I Expect from a Broker-Agent? Accessed 2026-09-25.
- Small Business. National Association of Insurance Commissioners; FAQ: What’s a business owners policy?; What’s general liability insurance? Accessed 2026-09-25.
- Builders Risk Coverage Form. Insurance Services Office, Inc.; hosted by Touchpoint Markets; IH 00 70 05 17, copyright 2017 (illustrative specimen): A.1–3, printed pp. 1–2; B, printed pp. 9–11; C–E, printed p. 12. Accessed 2026-09-25.