What’s The Difference Between Builders Risk And Wrap Up Liability Insurance?
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Understanding the differences between insurance products can be confusing especially when insurance jargon or acronyms are being used. One question the experienced insurance brokers at ALIGNED Insurance are asked regularly is what’s the difference between builders risk and wrap up liability insurance? The answer to the question “what’s the difference between builders risk and wrap up liability insurance?” is…lots…as they are entirely separate insurance products that cover two completely separate things. However, both products do share some similarities in that they are products used specifically to cover risks during construction projects.
So…What’s The Difference Between Builders Risk And Wrap Up Liability Insurance?
One insurance policy can’t cover all things so insurance companies build insurance products to address specific risks to ensure there isn’t overlap, there clarity on what is covered and that appropriate information is gathered to determine the pricing and coverage offered for each insurance product. For example a commercial property policy protects an organization from damage or destruction to their assets ex. buildings, equipment, inventory etc vs. a commercial general liability insurance policy which effectively covers potential bodily injury and property damage to third parties that a business could cause as a result of their operations.
Highlighting the differences between commercial property insurance and commercial general liability was done intentionally because the difference between builders risk insurance and wrap up liability insurance is the same. Builders risk insurance is just property insurance while a building or unit is under construction and wrap up liability insurance is general liability insurance while a building or unit is under construction.
Common covered claims under a builders risk policy would be water damage, fire damage, theft of building materials etc. during the construction period. In contrast wrap up liability coverage responds to claims arising from people coming on to a construction site and breaking an arm, leg etc and covers a number of other potential liabilities too.
Want to learn more about what’s the difference between builders risk and wrap up liability insurance? Our experienced commercial insurance brokers are here to help you to determine the types of coverage you need most. Connect with one of our Canadian Business Insurance Brokers today at 1-866-287-0448 or CLICK HERE!
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