Construction Insurance Overview
Construction firms carry risk that shifts by project phase, from builder’s risk during active construction to completed-operations liability that can extend a decade past project close. General contractors, subcontractors, and developers each carry a different risk profile even on the same job site.
Major Risks
Jobsite injury and workers’ compensation exposure, property damage during construction, subcontractor default, defect and completed-operations claims, and contractual risk transfer through indemnification and additional-insured requirements.
Common Coverage Requirements
- Builder’s Risk
- General Liability
- Workers’ Compensation
- Commercial Auto
- Umbrella / Excess
- Surety / Bonds
What to Look For in a Broker
Dedicated construction practice with underwriter relationships specific to builder’s risk and surety markets, claims advocacy experience with jobsite injuries, and familiarity with contract review for indemnification and insurance-requirement clauses.
FAQ
Does my general contractor need builder’s risk or does the developer carry it? It depends on the contract. Builder’s risk is sometimes carried by the developer/owner and sometimes required of the GC, which should be spelled out explicitly in the construction contract.
Why would a construction firm need cyber insurance? Construction firms increasingly manage sensitive project data, payment systems, and connected jobsite technology, creating exposure to funds-transfer fraud and business interruption from ransomware.