--- title: General Liability VS Builder’s Risk Insurance - What’s the Difference? description: The safety of your crew is top priority, but smart business owners also protect their businesses. Here’s what builder’s risk insurance can do for you. --- # General Liability VS Builder’s Risk Insurance - What’s the Difference? * * * ## General Liability VS Builder’s Risk Insurance - What’s the Difference? Builders and the property owners who hire them [help America grow](https://www.agc.org/learn/construction-data#:~:text=Construction%20is%20a%20major%20contributor,and%20a%20variety%20of%20services.). But where there’s reward, there’s risk—especially when erecting or remodeling buildings. Before construction can even begin, you’ll need all the relevant materials, structures, equipment, and personnel. With timelines stretching across months and years, any number of events can wipe out your hard work and investment up to that point. Construction professionals and property owners need additional safeguards in place to avoid a complete project failure. While general liability is a powerful start, it simply can’t cover every eventuality. Here’s why builder’s risk insurance should be next up on your to-do list. ## Builder’s Risk Insurance in Athens & Huntsville, AL After a half-century of service, [Pepper, Johnstone & Company](/about) knows how to safeguard America’s builders. We also know how easy it can be to rest on the laurels of general liability protections without seeking additional coverage. Builder’s risk insurance is a potent piece of armor to place around your construction company or building. Here’s what it is, how it helps, and how it differs from general liability. ### What is Builder’s Risk Insurance? Designed specifically for construction and remodeling projects, builder’s risk insurance covers the building itself. In many cases, the contractor purchases the policy on their own. On occasion, the building’s owner may purchase it. Regardless of who covers the cost, builder’s risk is an absolute must. ### What Does Builder’s Risk Insurance Cover? Job sites are chaotic and dangerous places. With dozens of trade professionals working with fire, electricity, heavy machinery, and heavy loads, the risk of damage is high on even the safest job sites. Builder’s risk insurance covers the property owner and construction company in the event of: - Fire & explosions - Theft & vandalism - Acts of God - Natural phenomena (lightning, hail, etc.) - More Without builder’s risk in place, a general contractor or subcontractor may be held liable for damage that isn’t their fault. Additionally, property owners may be stuck with the bill for repairs, even if a criminal act or act of God interferes with their project. ### How Does Builder’s Risk Insurance Work? If damage occurs to a building during construction, builder’s risk can help you pick up the pieces and continue without unnecessary expense. Builder’s risk insurance may cover some or all of the costs for: - Replacement building materials (onsite or off) - Replacement equipment (onsite or off) - Temporary structures - Cleanup & debris removal - Environmental cleanup - Greater-than-expected interest on loans For property owners, builder’s risk insurance may also provide: - Lost business due to project delay (for commercial sites) - Lost rental income (for multifamily properties) - Greater-than-expected interest on loans - Land & property taxes Builder’s risk can be expanded and customized for both construction industry professionals and property owners. This way, everyone has the peace of mind they need to get the job done safely and securely. ## How Does Builder’s Risk Differ from General Liability? General liability insurance is a default protection that every business needs – regardless of their industry or exposure. That said, general liability can’t cover everything (hence the word general). General liability insurance for construction companies can cover: - Injuries to the general public - Product/service liability - Property damage to others - Other damages General liability can safeguard your business in the event of the worst by providing funds for: - Legal fees and defense costs - Medical bills - Repairs to property - More As a contractor, your general liability coverage may not be sufficient to replace an entire building. Short of that, your coverage may not even begin to replace the lost equipment and time on a job site where severe damage occurs. By combining general liability with builder’s risk insurance, you’re giving your project the best chance of coming across the finish line. ## Purchase & Customize Your Builder’s Risk Insurance Today As an independent insurance brokerage, Pepper, Johnstone & Company can help you build a plan to meet the challenges of any construction project. Get the coverage you need at a price you can afford – all while sleeping easier in the knowledge that your project is on track. To get started, [contact us online](/contact). To speak with someone about how builder’s risk can help you, call us at [866-872-0431](tel:8668720431) for Athens, AL, or [866-872-0431](tel:8668720431) for Huntsville. ### Protecting America’s Builders for 50 Years and Counting! The bigger the projects, the bigger the protections. Builder’s risk insurance is the best answer to an uncertain world, especially when months of work and thousands of dollars are on the line. Protect your construction project by speaking with an independent insurance broker at Pepper, Johnstone today. ## Insurance Quotes Give us some info and we'll help you find the best coverage options. [Request a Quote](/quotes) ## Insurance Partners [Travelers — The Hartford — Chubb — Progressive — Liberty Mutual — Auto Owners — Safeco — Cincinnati Insurance — Hagerty — Universal Property & Casualty Insurance — American Modern Insurance Group — National General Insurance — Centauri Insurance — Foremost Insurance — Infinity Insurance — RLI — National Security Group — CNA — Frankenmuth Insurance — Philadelphia Insurance — Great American Insurance Group — FCCI Insurance Group — Columbia Insurance Group — Nationwide — Berkley Southeast Insurance Group — Penn National Insurance — Alabama Home Builders Self Insurers Fund — Alabama Self-Insured Worker's Compensation Fund — Alabama Retail — Associated Insurance Administrators — AlaCOMP — The Sheffield Group — John Hancock — Prudential — Old Republic Surety Company — Sun Life — Lincoln Financial — Genworth Life & Annuity Insurance — Symetra — AIG — Transamerica — Equitable — Banner Life — EMC National Life — Mutual of Omaha — MetLife — Unum Insurance — Protective Life — The Standard — Encompass Insurance — Donegal Insurance Group — State Auto — GEICO](/about/insurance-companies) ```json {"@context":"https://schema.org","@type":"WebSite","url":"https://www.pjcoinsurance.com/","name":"Pepper, Johnstone & Company"} ``` ```json {"@context":"https://schema.org","@type":"BlogPosting","mainEntityOfPage":{"@type":"WebPage","@id":"https://www.pjcoinsurance.com/blog/general-liability-vs-builders-risk-insurance-whats-the-difference"},"headline":"General Liability VS Builder’s Risk Insurance - What’s the Difference?","datePublished":"2024-09-15T05:00:00Z","dateModified":"2024-10-25T21:44:00Z","description":"The safety of your crew is top priority, but smart business owners also protect their businesses. Here’s what builder’s risk insurance can do for you.","publisher":{"@type":"Organization","name":"Pepper, Johnstone & Company","url":"https://www.pjcoinsurance.com/","logo":{"@type":"ImageObject","url":"https://webtricity-assets-2.wbtcdn.com/fab11678-4400-4e7b-9d4a-2a2f81685a28/images/logo.80d7f691a213f4c005424382960e8608cbeea8e81c4c6b54b3ad47b9b05f80b8.svg"},"sameAs":["https://www.facebook.com/Pepper-Johnstone-Company-164146103606469","https://twitter.com/PepperJohnstone","https://www.linkedin.com/company/pepper-johnstone-&-company","https://www.instagram.com/pjcoinsurance/"]},"image":{"@type":"ImageObject","url":"https://webtricity-assets-2.wbtcdn.com/fab11678-4400-4e7b-9d4a-2a2f81685a28/images/upload/istock-1001996836-1170x780.70049e0c72b59cd5f38cb750585f54f1c58b64cc63a034091d1608b5c997b311.jpg","width":1170,"height":780}} ```