Builders Risk Answer

Does Builders Risk Cover Subcontractor Property?

Partially — and the distinction matters. Here’s what the GC’s builders risk covers for subs, what it doesn’t, and what every subcontractor should carry on their own.

• ✓Materials incorporated into the structure: covered under builders risk
• ✓Sub’s tools, equipment, portable property: NOT covered
• ✓Subs can be added as additional insureds on the policy
• ✓Each sub should carry their own inland marine for their tools

The Direct Answer

Builders risk covers materials that become part of the permanent structure — including materials supplied by subcontractors once they’re incorporated into the building. The HVAC equipment the HVAC sub installed, the windows the glazing sub set, the plumbing the plumber roughed in — all of that is covered under the builders risk policy once it becomes part of the building.

What is not covered: the subcontractor’s own tools, equipment, machinery, and portable property that they bring to the site but take away when done. The plumber’s pipe bender, the electrician’s wire puller, the framer’s nail guns — none of that is covered under builders risk.

Subcontractors can be named as additional insureds on the builders risk policy by endorsement. This protects their insurable interest in materials they’ve supplied that are incorporated into the work. Not all GC policies allow this; we confirm it’s available on every commercial project we place.

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