RESOURCE
Construction Insurance Guide
Understand every insurance type that protects your projects, your workers, and your bottom line — from CGL to wrap-up programs.
Last updated: March 20, 2026
Click any card to see full details — what it covers, who needs it, costs, exclusions, and real-world claims examples.
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 |
|---|
Different project types carry different risk profiles. Here's what's typically required, recommended, or optional.
How insurance requirements shape bidding, contracts, and procurement — and how smart tools help manage it all.
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.
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.
Note: On small residential jobs, the owner (not the contractor) often carries Builder's Risk insurance. Verify responsibility in the contract before assuming coverage exists.
Trueleveler's free analysis checks subcontractor bids for insurance gaps and compliance issues.
Try Free Analysis →At minimum, a general contractor needs Commercial General Liability (CGL), Workers' Compensation, and Builder's Risk insurance. An Umbrella/Excess Liability policy is strongly recommended for additional protection. For public work, surety bonds (bid, performance, and payment) are typically required by law.
CGL (Commercial General Liability) covers third-party injury and property damage claims — for example, if a visitor is injured on your job site. Builder's Risk covers the structure itself during construction, including damage from fire, wind, theft, and vandalism. They protect different things and both are typically required.
If your work involves excavation, demolition, or handling hazardous materials, yes — standard CGL policies contain an absolute pollution exclusion and will NOT cover environmental claims. Pollution liability is essential for projects involving pre-1980 structures (asbestos risk), brownfield sites, or any work near environmentally sensitive areas.
OCIP (Owner Controlled Insurance Program) is purchased and administered by the project owner, while CCIP (Contractor Controlled Insurance Program) is purchased by the general contractor. Both "wrap-up" programs cover multiple parties under one consolidated policy for cost efficiency, typically on projects exceeding $100M.