Does a General Contractor Need Builders Risk Insurance?

A general contractor often coordinates project insurance, but the contract and policy decide who must arrange coverage and who qualifies as an insured. The specimen ISO builders risk form refers to the named insured in the declarations as “you”; that wording does not automatically extend insured status to every contractor on site.

The NAIC describes builders risk as property insurance for buildings in the course of construction. It does not replace the general contractor’s liability insurance, which responds to a different category of claims. A project may need both types of protection, with responsibilities coordinated among the parties.

Read the prime contract, subcontracts, and insurance requirements together. Check whether the owner or general contractor buys the builders risk policy, whether subcontractors are included as insureds, how completed work or materials are valued, and who bears the deductible. Ask the broker to reconcile those terms with the certificate and the actual policy endorsements; a certificate alone does not amend coverage.