I'm currently navigating a construction loan for a new build, and my lender is requiring me to have both builder risk and general liability insurance. I'm familiar with builder risk, but I'm puzzled about the general liability insurance part. They want me to list the builder/developer as 'additionally insured.' My insurance agent and I aren't quite sure why this is necessary. Can anyone shed some light on this?
1 Answer
It's actually pretty standard to list anyone working on the construction site as additional insured. When I'm hired as a contractor, I usually add the homeowner to my insurance as well. That way, everyone involved is covered in case something goes wrong, and it protects both parties throughout the project. Just seems to be part of the industry norms!
Got it! That makes sense. I did ask to be included on their liability insurance, but they told me I need to add them to my policy instead, which I just went ahead and did. But should I push back and ask for a Certificate of Insurance from them anyway?