Specialized insurance for the construction sector

Construction insurance provides coverage for financial losses caused by property damage, liability, and unexpected disruptions on the job. Usually, these losses are experienced by the owner or the principal contractor but can also include subcontractors and design professionals as well as other types of consultants, depending on the type of project and form of contract. 

Construction insurance is required contractually by all contractors, subcontractors, and builders involved in construction, renovation, or installation work, as well as developers, and project owners of all types.   

Most contracts require the contractor to carry at least a minimum amount of Commercial General Liability. Where the contractor is required to insure the project, additional required coverages typically include builder’s’ risk, equipment breakdown coverage, and commercial auto.    

Most stipulate Pollution Liability, as well as Aviation or Non-owned Aviation Liability if the project has elements that require it, and Watercraft Liability, also if and where required. CCDC also requires the contractor to evidence Contractors Equipment coverage for any equipment they may own or may be contractually responsible on site. Other coverages may be required depending on the form of contract, and certain minimum limits will be specified for each of these coverages in the contract itself. The contract will also stipulate the minimum or maximum deductible a contractor can accept for any of these coverages, which will vary from contract to contract, and may be different from the contractor's standard deductible. Where limits, coverages, and deductibles vary from what the contractor carries, the contractor will need to engage their broker to adjust their coverage accordingly.