Builders Risk Insurance for Florida Contractors
Whether you are a general contractor, custom home builder, roofer, or commercial developer, understanding how builders risk insurance works — who carries it, what it covers, and how it interacts with your GL and WC policies — is essential before breaking ground in Florida.
CONTRACTOR vs. OWNER
Who Carries Builders Risk — the Contractor or the Owner?
This is one of the most common points of confusion on Florida construction projects. The answer depends on the contract documents — and getting it wrong leaves one party uninsured.
In Florida, it is common for the property owner or developer to carry the builders risk policy and name the general contractor as an additional insured. This approach ensures the owner controls the policy and the lender's loss payee interest is properly documented.
On smaller residential projects, the general contractor often purchases the policy and names the owner as loss payee. This is common when the owner is not sophisticated about insurance and the GC has an established relationship with a carrier.
Regardless of who carries the policy, the contract should specify the arrangement clearly — and both parties should verify their coverage before work begins.
Owner carries the policy
Advantages
Considerations
Contractor carries the policy
Advantages
Considerations
BY TRADE
How Builders Risk Works for Each Contractor Type
The role of builders risk varies significantly depending on whether you are a GC, subcontractor, or specialty trade.
| Trade | Typical Role | Coverage Scope | Key Note |
|---|---|---|---|
| General Contractors | Typically carries or is named on the builders risk policy. Responsible for ensuring all subcontractors are properly covered. | Full project value from groundbreaking through CO | Named as additional insured on owner's policy or purchases own policy |
| Custom Home Builders | Usually carries the builders risk policy for spec homes. For custom builds, the owner often carries it. | Residential project value — $200K to $5M+ | Lender typically requires policy before first draw |
| Roofers | On new construction, named as additional insured on GC's policy. On standalone re-roofing, may need installation floater. | Roofing system and materials in transit | Verify additional insured status before starting work |
| Renovation Contractors | For major renovations, a builders risk policy covers the work in progress. Existing structure may need separate coverage. | Renovation value — materials, labor, soft costs | Existing structure coverage requires specific endorsement |
| Commercial Developers | Typically carries the builders risk policy and names the GC and lender. Higher limits and soft costs endorsements are standard. | Full project value including soft costs and delay-in-completion | Lender listed as loss payee; GC as additional insured |
| Subcontractors | Generally covered under the GC's or owner's builders risk policy if properly named. Verify before starting work. | Work in progress and materials for their scope | Confirm additional insured status in writing |
INSURANCE STACK
The Three Policies Every Florida Contractor Needs
Builders risk, general liability, and workers compensation cover different risks. Florida contractors typically need all three.
Builder's Risk
Physical damage to the structure being built
General Liability
Third-party bodily injury and property damage
Workers Compensation
Employee injuries and occupational illness
PRE-PROJECT CHECKLIST
Builders Risk Checklist Before Breaking Ground
Use this checklist to verify your builders risk coverage is in order before starting any Florida construction project.
FAQ
Contractor Builders Risk Questions
Who carries builders risk — the contractor or the owner?
Either party can carry the policy, but the contract documents should specify who is responsible. In Florida, it is common for the property owner or developer to carry the policy and name the GC as an additional insured. On smaller residential projects, the GC often purchases the policy. The key is that both parties are named and the lender is listed as loss payee.
Does builders risk cover a contractor's tools and equipment?
No — a standard builders risk policy does not cover the contractor's own tools, equipment, and machinery. Tools and equipment require a separate inland marine policy (contractor's equipment floater). Builders risk covers the structure being built and materials incorporated into it.
Can a Florida roofer get builders risk insurance?
Yes — roofers on new construction projects are typically covered under the GC's or owner's builders risk policy as additional insureds. For standalone re-roofing projects, an installation floater may be more appropriate than a full builders risk policy.
How does builders risk work with general liability?
Builders risk and general liability are complementary policies. Builders risk pays for physical damage to the project from covered perils (fire, theft, wind). General liability pays for third-party bodily injury and property damage claims. If a fire at your job site damages a neighboring property, GL responds — not builders risk.
Get a Builders Risk Quote for Your Florida Project
Bright Coast Insurance writes builders risk through US Assure (Zurich) for contractors and developers across Florida. We also write general liability and workers comp — so we can review your full insurance stack in one conversation.