Does Builders Risk Cover Liability?

NAIC defines builders risk around loss to buildings under construction, while it describes general liability as protection for injury or property damage claims by others. These are different exposures even when a project package contains more than one policy. A builders risk form may include limited extensions that do not turn it into general liability insurance. Ask who pays if a visitor is injured or neighboring property is damaged, and review the named insureds, liability limits, and any separate commercial general liability policy. A project owner or contractor should also ask about commercial general liability for third-party bodily injury and damage to someone else’s property; NAIC describes those as liability exposures distinct from construction property loss. Confirm whether the contractor, owner, and subcontractors each have the required liability policy and whether the contract requires specific limits or insured status.