Builders Risk vs. General Liability: What’s the Difference? 

If you’re starting a construction or renovation project in Miami, FL, you’ve probably heard of builders risk and general liability. Carrying the wrong one, or only one when you need both, can leave you exposed. Here’s a breakdown of what each policy does and how to figure out what coverage your project needs.

What Is Builders Risk Insurance?

Builders risk insurance is intended to cover a structure while it’s under construction. It typically covers physical damage to the building caused by events such as fire, theft, vandalism or severe weather. Coverage can vary by policy, but it generally applies to the structure, materials on-site and sometimes equipment. In Florida, where storms and high humidity can create financial risks mid-project, this coverage is worth having.

What Is General Liability Insurance?

General liability insurance financially protects your business from third-party claims involving bodily injury or property damage. If a visitor is injured on your job site or your work accidentally damages a neighboring property, general liability insurance may help cover the resulting costs. It is a common policy for many contractors and construction businesses, and many clients and municipalities in Florida require it before work can begin.

Which One Do I Need?

The short answer is often both. Here’s a quick way to think about it:

• Builders risk insurance covers the project itself against physical damage during construction.
• General liability insurance covers your business against claims made by others.
• Some projects may require both before permits are issued.

Your specific situation, project size and contract requirements all affect what coverage makes sense.

Talk to an Agent Before You Build

Starting a project without the right coverage in place is a risk no contractor should take. Contact Florida Insurance Group today, and our team can help you find the right combination of builders risk and general liability insurance for your project in Miami, FL.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.