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Builder's Risk vs. General Liability: What Each Covers and What to Ask For

By SubCover HQ · Updated Nov 3, 2026 · 3 min read

On a construction job, two policies get confused all the time: builder's risk and general liability. They answer different questions. Builder's risk asks, "What happens if the project itself is damaged before it's finished?" General liability asks, "What happens if someone's work hurts a person or damages someone else's property?"

What builder's risk covers

Builder's risk is property insurance for a structure while it's being built or renovated. It typically covers the building, materials on site, and often materials in transit or in storage, against causes of loss such as fire, wind, theft, and vandalism, subject to the policy's exclusions. Common exclusions or limits include flood, earthquake, faulty workmanship itself, and wear and tear. Coverage usually ends when the building is occupied, put to its intended use, or accepted by the owner, depending on the policy terms.

What general liability covers

Commercial general liability covers claims by others for bodily injury and property damage caused by the insured's operations or completed work. If a sub's crew drops a beam on a neighbor's car or a visitor trips over their cords, that's a general liability question. It generally doesn't pay to repair the insured's own work or the project under construction in the way builder's risk does.

Who usually buys which

• Builder's risk: usually one policy for the whole project, bought by the owner or the general contractor, as the construction contract specifies. Subs are often included as insureds for their interest in the work.
• General liability: every contractor and sub carries its own policy, and the parties above them are typically added as additional insureds.

So you'll rarely ask a trade sub for builder's risk, but you'll always ask for general liability.

How each shows up on certificates

General liability appears on the ACORD 25 certificate of liability insurance, in its own section. Builder's risk is property coverage, so it's commonly shown on an ACORD 28 evidence of commercial property insurance, or listed in the "Other" row or description box of an ACORD 25. Our ACORD 25 vs. ACORD 28 guide explains the difference between those forms.

What to check on a builder's risk certificate

1. The project address matches your job.
2. The limit reflects the completed value of the work, as your contract requires.
3. Dates cover the whole construction period, including any extension.
4. Named insureds or loss payees include the parties your contract lists, such as the owner, GC, and lender.
5. Waiver of subrogation, if the contract requires the parties to waive claims against each other for losses the builder's risk policy pays.

Key takeaways

Builder's risk protects the project; general liability protects against claims from others. The contract decides who buys builder's risk, while every sub needs its own general liability. SubCover HQ tracks both kinds of certificates, with each policy's dates, for $99/month.

Frequently asked questions

Does general liability cover damage to the building under construction?

Generally not in the way builder's risk does. General liability responds to claims by others for injury or damage; builder's risk is property coverage for the project itself.

Who buys builder's risk insurance?

Usually the owner or the general contractor, as the construction contract specifies. Trade subs rarely buy their own.

Which certificate shows builder's risk?

Often an ACORD 28 evidence of commercial property insurance, or a line in the Other row or description box of an ACORD 25.

When does builder's risk coverage end?

Typically when the building is occupied, put to use, or accepted, depending on the policy terms. Check the dates against your schedule.

This guide is general information, not insurance or legal advice. Policy terms vary; your insurance professional and attorney determine what you should require.