Does Builders Risk Cover Contractor Negligence?

Builders risk is first-party construction property coverage, while general liability is designed for claims alleging injury or damage to others. An illustrative builders risk form excludes some faulty workmanship and construction conditions, with separate wording for resulting damage. If the contractor damages the work or a neighboring building, the parties and policy interests matter. Review who is insured under the builders risk policy, its workmanship and ensuing-loss terms, and the contractor’s general liability policy. Contract indemnity wording and certificates do not themselves expand policy coverage. When the allegation concerns damage to a third party or bodily injury, the contractor’s CGL policy may be implicated; damage to the contractor’s own work can raise different exclusions. Ask the carrier to identify who insured the work, whether the owner is included for its interest, and how the policy treats faulty operations and resultant damage before relying on a certificate or contract clause.