Builder’s Risk vs. General Liability Insurance
Understand the different roles of builder’s risk and general liability insurance when planning coverage for a commercial construction project.
Start with the exposure
A construction project brings together property at risk during the build and potential liability to other people or businesses. Builder’s risk and general liability address different parts of that picture. Comparing them starts with what is being insured, rather than treating one policy as a replacement for the other.
What builder’s risk addresses
Builder’s risk focuses on property during construction. The building or project, materials and equipment being incorporated into the work are central to the discussion. The policy determines which property, causes of loss, locations and project stages are covered.
For a placement, discuss the scope of work, construction values, project schedule, site conditions and any testing or handoff requirements. Review Shepherd’s Builder’s Risk offering for its published capabilities, including project-specific placements, master programs and quota share.
What general liability addresses
Commercial general liability focuses on liability exposures, including third-party bodily injury and property damage, subject to policy terms. It belongs in the casualty conversation alongside the account’s other liability requirements.
At Shepherd, General Liability sits within Primary Casualty, together with Commercial Auto and Workers’ Compensation. Excess Casualty may also be part of the discussion for larger or more complex liability structures.
Coordinate the placement
Discuss property and casualty requirements together with the broker and underwriting team. Confirm the insured entities, work involved, contract requirements, limits, deductibles, exclusions and intended coverage period. Review the actual policies before relying on a particular protection.
Read a combined casualty and builder’s risk placement, or contact Shepherd about a project.
For general background on these coverage categories, see the Travelers builder’s risk overview and Chubb construction overview. Those sources describe their own offerings; Shepherd’s terms are determined separately.