What to Consider
Construction sites are bustling with activity—and a fair share of risks. Our professionals understand your trade and take time to learn about your projects for tailored insurance solutions. We help you cover your bases to stay protected, compliant, and on budget.
Industry-specific Experience
Specialists in commercial, residential, and artisan contractor risks.
Customized Coverage Options
Access to solutions including builders’ risk, general liability, workers’ comp, and more.
Advanced Risk Management
Construction business insurance solutions for OCIP, CCIP, and subcontractor default protection.
National Support Network
Regional specialists helping to ensure confident, compliant project decisions.
Construction Insurance FAQs
What is builder's risk insurance, and do I really need it for my project?
Builder's risk insurance may cover the structure and materials during construction against hazards like theft, vandalism, fire, and certain weather events. It can be purchased by the owner or the general contractor, depending on contract terms.
Typical inclusions may include:
- Materials on site, in transit, and at temporary locations
- Soft costs such as architectural fees and permits, when endorsed
- Testing, scaffolding, and temporary structures subject to the policy form
- Exclusions that may require endorsements, such as flood or earthquake
If you have any property at risk before completion, builder’s risk is usually essential. Align limits to projected completed value and timeline.
Am I liable for a subcontractor's injury if they have their own coverage?
Risk transfer is critical. Your policy terms and contracts may determine whether your coverage responds when a subcontractor’s insurance is inadequate. Clarify these items:
- Certificate of Insurance (COI) shows evidence of coverage but is not an endorsement
- Additional Insured Endorsements extend your General Liability coverage to certain parties for vicarious liability
- Primary and noncontributory wording affects whose policy responds first
- Contractual indemnity clauses must align with insurance requirements
Review COIs and endorsements for each sub and keep records current. This may help prevent surprises if a loss occurs.
Does my General Liability policy cover AI-driven design errors or drone crashes on-site?
New technology can blur lines between coverages. A drone crash may trigger General Liability or Commercial Auto, while design algorithm errors generally fall under Professional Liability.
Coordinate these policies:
- General Liability for bodily injury and property damage
- Commercial Auto for drone use tied to vehicles, where applicable
- Professional Liability for design and review services
- Cyber Liability if data or systems are compromised during operations
Map tech uses to policy triggers and add endorsements for aviation or data exposures where necessary.
What is the difference between a Surety Bond and Subcontractor Default Insurance (SDI) for private projects?
Both aim to protect the project from subcontractor failure, but they work differently and pay out in different ways.
Compare the two:
| Feature | Surety Bond | Subcontractor Default Insurance (SDI) |
|---|---|---|
| Structure | Third-party guarantee | First-party insurance |
| Payout speed | Legal process driven | Typically faster claims handling |
| Vendor management | Surety prequalification | Vetted vendor lists and internal controls |
| Cost and control | Bond premiums | Insurance premiums with deductible |
Choose based on how quickly you need funds, your ability to vet subcontractors, and your appetite for deductibles and retained risk.