Construction Insurance FAQs
Construction Insurance Questions & Answers
Construction professionals navigate a risk environment shaped by tight contract margins, labor volatility and project-by-project uncertainty. Get answers to frequently asked questions spanning liability, surety, workers' compensation, risk management and more.
Most construction firms need general liability, workers' comp, commercial auto and builder's risk coverage at minimum. Bonds and umbrella policies often round out the program.
These policies guard against different risks, so most projects carry both. Builder's risk covers the structure itself, while general liability covers third-party injury and damage claims.
Premiums start with a rating basis like payroll or revenue, multiplied by a rate tied to your class code. Claims history and coverage limits then adjust the final cost.
Builder's risk protects a structure under construction from perils like fire, theft, wind and vandalism. Materials on-site, in transit or in storage are typically included too.
General liability is one specific policy covering third-party injury and property damage. “Contractor liability” is broader, layering in coverage like builder's risk or professional liability as needed.