Home/Resources/Construction Insurance Guide
Resource · Insurance

Construction insurance guide.Every coverage type. Every gap. Every protected dollar.

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
11
Insurance Types Covered
1–5%
Typical % of Project Cost
$10B+
Annual Construction Claims (US)
#1
Cause · Falls & Collapses
This guide is for general informational purposes. Laws and requirements vary by jurisdiction. Always consult with local legal or industry professionals before making decisions based on this content.
§ 01 COVERAGE TYPES

Types of construction insurance.Every policy, what it covers, what it excludes.

Click any card to expand — what it covers, who needs it, costs, exclusions, and real-world claim examples.

§ 02 SIDE-BY-SIDE

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
§ 03 PROJECT REQUIREMENTS

Insurance by project type.Different risk profiles, different coverage.

Different project types carry different risk profiles. Here's what's typically required, recommended, or optional.

§ 04 PRACTICAL KNOWLEDGE

Insurance in practice.How coverage shapes bids, contracts, and procurement.

How insurance requirements shape bidding, contracts, and procurement — and how smart tools help manage it all.

§ 05 KEY DISTINCTION

Claims-made vs. occurrence.The policy form that quietly decides your coverage.

Two fundamentally different policy forms — same industry, very different timing. 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.

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.
§ 06 COMMON QUESTIONS

Frequently asked questions.The ones that decide compliance before the claim arrives.

What insurance does a general contractor need?
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.
What's the difference between CGL and Builder's Risk?
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.
Do I need pollution liability insurance?
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.
What is an OCIP vs. CCIP?
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.
Automate compliance review

Upload your contract.Catch insurance gaps before you bid — not after you win.

Trueleveler's Contract Review engine identifies insurance requirements, flags coverage gaps, and benchmarks your limits against project requirements — so you bid with confidence.

Try Contract Review →