Contractor and Home Owner Liability Insurance
Builders Risk Insurance provides protection for parties with an insurable interest in a construction or renovation project. In practice, only small renovations/non-bearing walls are often covered under the homeowners policy. Check with your Home Owner insurance provider as not all policies will cover small renovations.
Home Owners Risk Liability
Consumers acting as their own General Contractor on builds or larger renovations will need to ensure they have a Builders Risk and General Liability policy in place. The Builders Risk policy protects the physical build/ building supplies and takes the place of the Home Owners policy during the build. The General Liability coverage will offer Liability coverage arising from claims arising from 3rd party property damage or 3rd party bodily injury. The General Liability will also act as an extra layer of protection in the case that a hired (Insured) subcontractor does not have enough insurance to cover a claim entered against them.
Contractors Builders Risk Policies
A Contractor conducting projects will need a Builders Risk policy for the Renovation or build they are undertaking on the behalf of their client. The General Contractors' own policy will offer General Liability coverage for the areas under the Care, Custody, and Control of the Contractor. For example, a shared driveway would be outside of the area controlled by the General Contractor. If a slip and fall were to occur the claim may not be picked up by the contractors General Liability and would fall onto the liability of the Property Owner. Premise Liability coverage can be purchased separately or maybe an extension of the property owners Home or Tenant policy.
When hiring a General Contractor a property owner needs to ensure they have premise liability coverage in place. This will cover the liability exposure from areas on the property that are not under the Care, Custody, and Control of the contractor. Premise Liability can be purchased separately or maybe an extension of the property owners Home or Tenant policy.