IWhat's the difference is between a CGL policy and a Builder’s Risk Policy.?

Question

I’m trying to figure out whether I should recommend a CGL Policy, or a Builder’s Risk Policy, or both policies to an owner who is hiring a construction manager to hire all of the subs.

Answer 1

CGL is commercial general liability. It's a LIABILITY policy. Builder's risk is a PROPERTY policy. I'd strongly suggest you don't RECOMMEND ANYTHING, if you're not familiar with the difference between a property policy and a liability policy.

ps, BOTH possibly need to be purchased along with workers comp and likely performance and payment bonds, but this is NOT a "beginner's" type risk - there are LOTS of complications. You probably should call in a buddy to consult & make the recommendations.

Answer 2

I agree with mbrcatz17 in that you should probably not be offering advice to the owner if you do not have enough experience to know the difference between a liability policy and a property policy.

I will not advise you but ...... I insist that the GC maintain $X limit of occurrence based CGL, BAL WC/EL and BR, In addition, the GC must ensure that all subs comply with our requirements.

PS. Don't forget the indemnity agreement!!!

Answer 3

Both, and building and contents insurance as well.
CGL means commercial general liability insurance.
Builders Risk Insurance applies to the labor and material that has gone into the construction of a partially completed building. It may cover building materials on site as well.
It won't cover a building that is completed.
You may also have to consider workers' compensation insurance, or make sure all of the subs have their own WC insurance. The subs should have their own liability insurance as well.