Construction insurance guide.Every coverage type. Every gap. Every protected dollar.
Construction insurance is the set of policies and bonds that protect your projects, your workers and your bottom line. At minimum, a general contractor needs Commercial General Liability (CGL), Workers' Compensation and Builder's Risk insurance; for public work, surety bonds (bid, performance and payment) are typically required by law.
What types of insurance protect a construction project?
The guide covers 11 types of construction insurance in four groups: liability, property, bonds and SDI, and specialty or wrap-up coverage. Click any card to expand — what it covers, who needs it, costs, exclusions, and real-world claim examples.
Insurance comparison matrix.Scope, cost, legal requirements — compared.
Quickly compare coverage scope, cost ranges, and legal requirements across all construction insurance types.
| Insurance Type | Who Carries It | Typical Cost | Required by Law? | Covers Property | Covers Injury | Covers Prof. Errors |
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Which insurance does each project type need?
General Liability (CGL) and Workers' Compensation are marked required for all five project types below. The other coverages are required, recommended or optional depending on the project type, because different project types carry different risk profiles.
How does insurance shape bids, contracts and procurement?
Insurance typically represents 1–5% of your bid price, and project owners and GCs require a certificate of insurance (COI) from every contractor before work begins. The cards below also cover additional insured endorsements, waivers of subrogation, and how smart tools help manage it all.
What is the difference between claims-made and occurrence policies?
An occurrence policy covers incidents that happen during the policy period, whenever the claim is filed; a claims-made policy covers only claims filed during the active policy period. Understand which applies to each coverage you carry.
Occurrence-BasedThe standard for most construction coverage.
Covers claims for incidents that occurred during the policy period, regardless of when the claim is filed. Most CGL and Builder's Risk policies are occurrence-based. This is the preferred form for most construction coverage.
Claims-MadeCoverage tied to when the claim is filed.
Only covers claims filed during the active policy period. Common for Professional Liability (E&O) and Pollution Liability. This distinction matters significantly for design-build projects — if you switch carriers or let a policy lapse, you need "tail coverage" to protect against claims filed after the policy ends for work done during the policy period.
Frequently asked questions.The ones that decide compliance before the claim arrives.
What insurance does a general contractor need?
What's the difference between CGL and Builder's Risk?
Do I need pollution liability insurance?
What is an OCIP vs. CCIP?
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- Certificates of Insurance: Frequently Asked QuestionsACORDACORD’s answers on what a certificate of insurance is, with the list of ACORD certificate forms, including the ACORD 25 for liability.
- ABCs of Experience RatingNational Council on Compensation InsuranceNCCI’s explanation of how the experience modification rate is worked out from payroll and loss records.
- Surety Bonds (Treasury Circular 570)U.S. Department of the Treasury, Bureau of the Fiscal ServiceThe Treasury list of surety companies approved to write federal bonds (Circular 570).
- Construction IndustryOccupational Safety and Health AdministrationOSHA’s hub for construction safety and health: standards, common hazards, training and enforcement.