Question 1

Who pays for builders risk insurance, the owner or the contractor?

Accepted Answer

The contract decides. Either can buy it. On many projects the owner buys it to control the coverage and keep the lender's requirements met. The contract should say who buys it, who is insured under it, and who pays the deductible. Send us the contract and we will review its insurance requirements against your policy. The contract and the policy govern.

Question 2

What does builders risk cover?

Accepted Answer

It is property insurance for a building while it is built or renovated: the work in place, materials on site, and often materials in transit or storage, against covered causes such as fire, wind, theft and vandalism. Soft costs and delay can be added. Sublimits for water damage and theft vary by policy.

Question 3

Does builders risk cover injuries or liability?

Accepted Answer

No. Builders risk covers the property. Injuries to workers and the public fall under workers compensation and general liability.

Question 4

Do I need builders risk for a renovation?

Accepted Answer

Often yes, especially if a lender is involved. Renovation forms can cover the new work, and some can include the existing structure. Some insurers prefer to keep the existing building on its regular property policy. Check that the two policies do not leave a gap.

Question 5

When does builders risk end?

Accepted Answer

Usually at completion or when the building is occupied or put to use, whichever comes first. Line up the permanent property policy before then.

Question 6

What does Nassau County want on a contractor's certificate of insurance?

Accepted Answer

The Nassau County insurance requirements page says a certificate must include a specific description of the type of work. It says the words General Contracting, Remodeling, Carpentry, and Home Improvement will not be accepted. Limits of insurance on that page: for a home improvement license only, bodily injury $250,000/$500,000 and property damage $100,000. For an environmental hazard remediation license only, bodily injury $1,000,000/$2,000,000 and property damage $1,000,000/$2,000,000. For all other business licenses, bodily injury $100,000/$300,000, property damage $50,000/$50,000, combined limit $300,000 minimum, and deductibles are not acceptable. The certificate holder is Nassau County Department of Consumer Affairs, 240 Old County Road, 3rd Floor, Mineola, New York 11501.

Question 7

What does NYC DOB need?

Accepted Answer

The NYC Department of Buildings says a licensed contractor's general liability insurance must be at least $1 million for each occurrence, and that workers compensation and disability benefits insurance must be current for a permit. If there are no employees, a disability waiver can apply. Some permits also need project-specific general liability. See the Department of Buildings pages linked below.

Question 8

What is Labor Law 240?

Accepted Answer

New York's scaffold law can make owners and contractors liable for many gravity-related injuries on construction sites, such as falls from height. It is a big reason GL wording matters for New York contractors. Ask what the policy says about height, action-over and contractual liability before you sign. This is general information, not legal advice.

Question 9

Do contractors need workers comp and disability benefits to get a permit?

Accepted Answer

Generally, yes. Town permit offices ask for proof of workers comp and disability benefits on New York State forms, or an exemption form, before they issue a permit. Check with your town's building department.

Contractor and builders risk insurance in New York

What a contractor program usually includes

Builders risk