Builders Risk vs. Contractor Insurance: What Contractors Need to Know in Coastal North Carolina

Builder’s risk insurance covers the project—the structure under construction—while contractor insurance covers the business doing the work. Most contractors in Brunswick County, NC and surrounding coastal communities need both: builder’s risk for the jobsite and contractor insurance for liability, tools, equipment, and ongoing operations. If you build, renovate, or subcontract in any capacity, these policies protect different parts of your risk—and they don’t overlap as much as many builders assume.

At True Carolina Insurance Agency, we spend a lot of time helping local contractors clarify where one policy ends and the other begins, especially with the added challenges of coastal wind and storm exposure.

What Builder’s Risk Insurance Covers

Builder’s risk insurance is designed to protect the structure while it’s being built. Think of it as property insurance for a job that isn’t finished yet. If a fire, storm, theft, or vandalism damages the home or project materials, builder’s risk typically responds.

Builder’s risk covers things like:

The home or structure during construction
Materials, supplies, and fixtures on-site or in transit
Work in progress—framing, roofing, interior rough-ins
Certain soft costs (depending on the policy)

A builder’s risk policy is temporary. It begins when construction starts and ends when the project is completed or occupied. Once the job is finished, this policy is no longer active—and it does not protect the contractor’s ongoing business operations.

Learn more: Builder’s Risk Insurance

What Contractor Insurance Covers

Contractor or trades insurance (often called general liability + added coverages) protects the contractor as a business entity. It responds if someone alleges property damage, bodily injury, or negligence caused by your work—even long after the project is done.

Contractor insurance commonly includes:

General liability (slip-and-fall, property damage to others)
Workers compensation
Commercial auto
Inland marine/tools & equipment coverage
Completed operations coverage

If a homeowner claims your work caused damage after move‑in, contractor insurance—not builder’s risk—is what responds. These are two different worlds of protection, and both are critical for contractors working across Brunswick County’s active building market.

Learn more: Contractor & Trades Insurance

Where Builder’s Risk Ends and Contractor Insurance Begins

To make this clearer, here are a few real-world examples we see in Brunswick County and nearby coastal communities.

Scenario 1: New Home Build in Shallotte

A windstorm damages framing and materials on-site.

Builder’s Risk Responds: Covers damage to the project itself.
Contractor Insurance Does NOT: It doesn’t cover damage to the home under construction.

Scenario 2: Kitchen Renovation in Ocean Isle Beach

The contractor accidentally damages a homeowner’s existing floor while removing cabinets.

Contractor Insurance Responds: This is third-party property damage.
Builder’s Risk Does NOT: Because it only applies to the part being built or renovated, not the client’s existing property.

Scenario 3: Tool Theft During a Leland Renovation

A trailer of tools and small equipment is stolen overnight.

Inland Marine/Equipment Insurance Responds: This protects mobile tools and equipment.
Builder’s Risk Does NOT: It doesn’t cover contractor-owned tools.

Learn more: Inland Marine Insurance

Scenario 4: Post‑Completion Claim

Three months after completion, a homeowner claims improper installation caused a leak.

Contractor Insurance Responds (Completed Operations): This protects your workmanship exposure.
Builder’s Risk Does NOT: Coverage ends once the project is complete.

Why Builders in Coastal Brunswick County Need Extra Wind and Storm Protection

Coastal construction—from Calabash to Oak Island—faces stronger wind speeds, hurricane threats, and higher material vulnerability. Builder’s risk policies in Brunswick County often require windstorm or named-storm endorsements, and deductibles vary widely between insurers.

Contractors must ensure both their builder’s risk policy and their own business insurance account for:

Wind-driven rain
Storm surge exposure (especially during material staging)
Higher theft risk after storm evacuations
Stricter building standards impacting valuation

True Carolina Insurance Agency works directly with local builders to avoid gaps—especially where wind coverage stops on one policy and needs to begin on another.

The Bottom Line: Most Contractors Need Both

Builder’s risk protects the job. Contractor insurance protects the business. They work together, and one won’t replace the other. In coastal areas like Brunswick County, NC, carrying the right combination keeps your projects, equipment, and reputation protected from unexpected setbacks—whether those come from storms, accidents, or post‑completion claims.

Schedule a Coverage Consultation Before You Break Ground

If you’re a builder, remodeler, or subcontractor working in Brunswick County or surrounding coastal communities, True Carolina Insurance Agency can help make sure your next project is protected from day one. We review policies, identify gaps, and compare options so you can build confidently.