Who Buys Builder’s Risk Insurance? The Owner or Contractor?
Who’s Responsible for Builder’s Risk Insurance?
A common question on construction jobs:
Who’s supposed to carry the builder’s risk policy—the owner or the contractor?
The answer? It depends on the contract.
But one thing is certain: both parties have something at stake.
Let’s look at what each side brings to the table:
🔹 The Owner
Owns the property and eventually the completed structure
Wants assurance the investment is protected
May prefer to control the insurance process directly
🔹 The General Contractor (and Subs)
Procures materials and does the labor
Isn’t paid in full until the job is done
Can suffer big losses if materials are damaged or stolen before installation
In most modern projects, both sides have a legitimate insurable interest. That’s why builder’s risk policies are often written to cover everyone:
Owner, GC, subs.
Contract Language Matters
Read the contract. This sounds obvious but is often overlooked.
Regardless of who buys the policy, make sure:
Everyone with an insurable interest is named
Coverage aligns with project-specific risks
The scope is clearly outlined—no assumptions
What Happens When You Don’t Talk About It?
If the contract is vague—or worse, silent—about builder’s risk responsibilities, you could face:
Gaps in coverage
Finger-pointing after a claim
Delays in insurance responding
Talk About It Early
The best move is to have this discussion before ground breaks.
Sit down with the owner, GC, and even your broker if needed. Decide:
Who’s purchasing the policy
What exposures need to be covered
Which parties need to be listed as named insureds or additional insureds
The result? Clear expectations and no surprises down the road.
Need help navigating who should carry builder’s risk on your next project?
I help owners and contractors work through these details so they’re protected—without slowing down the job.
Let’s connect and make sure your policy fits your project.
