Construction work comes with risk. Whether you build homes, commercial buildings, or roads, accidents and damage can happen fast. That’s why insurance is so important. The right policies help protect your projects, your crew, and your business. Here are key types of insurance you should consider when working in construction:
Builder’s Risk Insurance
Builder’s risk insurance covers your project while it’s under construction. You may also hear it called course of construction insurance. It protects the building itself, along with materials, tools, and equipment on-site.
If fire damages the framing or someone steals expensive materials, this policy helps cover the loss. It also protects against vandalism, wind, lightning, and hail damage. Coverage usually lasts from the start of construction until the project is complete. Without it, you could face huge costs before a job is even finished.
General Liability Insurance
Every construction business needs general liability insurance. It covers injuries to others and damage to property. For example, if a passerby trips on debris and gets hurt, this policy helps pay for medical bills and legal fees.
It also covers claims related to advertising injuries or personal harm—like slander or false claims in marketing. If a lawsuit happens, liability insurance can pay for lawyers, settlements, or court judgments. It protects your business from costly legal problems.
Workers’ Compensation Insurance
Construction jobs are physically demanding. Injuries can happen any day. Workers’ compensation insurance is usually required if you have employees. It covers medical treatment, lost wages, and rehabilitation if a worker gets hurt or sick on the job.
It also protects your business from lawsuits filed by injured employees. Whether a worker falls off a ladder or strains their back lifting heavy materials, this policy helps them recover while protecting your company.
Contractors Pollution Liability Insurance
Construction often disturbs land and materials. That can lead to pollution risks. Contractors pollution liability insurance covers costs related to environmental damage caused by your work.
If your job site leaks fuel into the soil or releases harmful substances into the air, this insurance helps. It covers cleanup costs, injuries, and property damage caused by pollution. It’s especially important for work involving excavation, demolition, or hazardous materials.
Professional Liability Insurance
Professional liability insurance—also called errors and omissions (E&O) insurance—is critical for professionals involved in design or planning. This includes architects, engineers, and design-build contractors.
If a mistake in your plans causes a delay or loss, this policy helps cover the damages. It pays for legal costs if someone sues you for poor design, missed deadlines, or oversight. If your design leads to structural issues, for example, this insurance can protect you from financial fallout.
Commercial Auto Insurance
Construction work usually requires vehicles. If your business owns trucks, vans, or trailers, commercial auto insurance is a must. It covers your fleet if there’s an accident on the road or at a job site.
This policy covers bodily injury, property damage, and physical damage to your vehicles. If your dump truck hits another vehicle, or your equipment trailer is stolen, this coverage helps you recover quickly. Personal auto policies won’t cover vehicles used for business—so this coverage is essential.
Umbrella or Excess Liability Insurance
Some claims cost more than your basic policies can cover. That’s where umbrella insurance helps. It adds extra liability protection on top of your existing coverage.
For example, if a lawsuit exceeds your general liability limits, umbrella insurance kicks in. It’s ideal for high-risk jobs, large-scale projects, or companies that want added peace of mind. It offers strong protection without having to raise the limits on each policy.
Final Thoughts
Construction is fast-paced and full of moving parts. Things can go wrong at any time. Insurance doesn’t just protect your business—it helps you keep projects on track and clients happy.
Make sure your coverage matches the scope of your work. From a single house to a major commercial build, risks grow as your projects do. Take time to review your policies often and adjust them as needed.
Need help building a custom insurance plan for your construction business? Call Combined Insurance Service LLC at 816-847-1911. We’re ready to help you protect your business—every step of the way.