Does Builders Risk Cover Subcontractors?

Sometimes, for a subcontractor’s insured interest in project property. Builders risk does not automatically cover every subcontractor’s tools, liability, or workers, so check who is listed and which policies the contract requires. The NAIC definition focuses on the building and incidental construction property rather than every party’s business property. Make sure the declarations identify the required insureds and describe the project. Ask whether subcontractors are insureds, additional insureds, or loss payees, and for which interests. Their liability, workers compensation, and tools or equipment may need separate policies; verify contract requirements and endorsements. A subcontractor’s own general liability and workers compensation policies address different exposures from physical damage to the project, and its tools may need inland marine coverage. Compare the prime contract’s insurance clause with the builders risk declarations: confirm who is a named insured, whose property interest is insured, how loss-payee status works, and whether subcontractor work is subject to a special exclusion.