By Oscar Barajas · CA License #6015964 · October 30, 2026
Contractors hear both names on almost every bid. They sound like they overlap. They don’t. Here’s the simple way to tell them apart.
What does builder’s risk cover?
Builder’s risk covers the building itself while it’s going up or being remodeled. Think of it as property coverage for an unfinished building.
- The structure while it’s under construction
- Materials stored on the job site
- Materials on the way to the job
- Temporary structures like scaffolding and forms
What does general liability cover?
General liability covers harm your business causes to other people or their property. It doesn’t cover the building you’re working on.
- Someone gets hurt on your job site
- You damage a neighbor’s fence or car
- Legal costs if you’re sued, even with no merit
So which one do I need?
Usually both. Here’s a quick example. A storm damages the half-built frame. That’s builder’s risk. A visitor trips over your lumber and breaks a wrist. That’s general liability.
Who buys builder’s risk?
The owner or the contractor. Your contract usually says which one. Read that section before you bid so you price it in.
What doesn’t either one cover?
- Your tools and equipment (that needs tools and equipment coverage)
- Injuries to your own workers (that’s workers’ comp)
- Bad workmanship itself, in most policies
- Flood and earthquake, unless added
What should I send Oscar?
Send the insurance section of the contract, the job address, the project value and the start and end dates. He’ll show you where the gaps are and line up coverage before day one.
Call 279-842-0928 or start your coverage profile. A licensed agent reviews every request. This article isn’t a quote or proof of coverage.
Ask Diamond