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Construction Company Insurance Made Simple

Construction company insurance can sound complicated. An easy way to understand it is most risks fall into the categories of workers compensation, liability, commercial auto and property coverage. As such, when you have all of these covered, you have a robust solution for your business.

Workers Compensation

This insurance covers your employees. Unfortunately accidents on site are common. Even though you take all the precautions and necessary care, accidents do still happen. Workers Compensation assists with medical care costs. Furthermore, it will also pay two-thirds of an employee’s income while they are recovering. When they return to work and need retraining, it also assists with this. A few things to note with this insurance:

  • It is mandatory in all 50 states. If you have employees, you must have it.
  • Keeping it up to date with the correct codes is important.  This will ensure you are paying the right amount for your Workers Compensation with no surprises.
  • If you use sub-contractors, you must insist they have a certificate of insurance naming you as additional insured.  If not they will charghe you with a premium for their payroll.


Liability coverage is one of the most important types of construction company insurance you must have.  It protects you from the costs of a lawsuit if you are sued for negligence.  Contractor Liability is made for the specific needs of the construction industry.  It covers you for claims that you have caused bodily injury, property damage, reputation damage, or financial loss due to advertising mistakes.  This insurance pays for:

  • Costs of your legal defense
  • Medical payments
  • Settlements

The cost of a lawsuit can put you out of business if you do not have this coverage.

Commercial Auto Insurance

Commercial Auto Insurance works in a similar way to your personal auto policy.  It covers the costs of accidents that involve your work vehicles.  This can include liability costs if you or your employee are the cause of the accident.  It also covers repair damages and medical costs.  Commercial Auto generally also covers your vehicles for theft and vandalism.

Property Coverage

The property coverage specific to construction is Builder’s Risk Insurance.  This insurance is made for each project and it covers that particular project. It’s use is for the construction of new buildings and the renovation/restructuring of existing ones.  In general it will protect the building as well materials, equipment and supplies used in the course of construction.  It covers loss causes such as theft, fire and vandalism.  Things to note about this insurance:

  • It is term insurance, generally 3, 6 or 12 months long, with a start and end date
  • The policy must be valued at 100% of the replacement cost of the building at completion
  • One policy covers all participants in the project
  • You can specify the coverage you need and the causes of loss you want to include

Contractors Liability Specializes in Construction Company Insurance

At Contractors Liability we know all there is about insurance for the construction industry. Our agents will provide you with a tailored solution for your business.  Call Contractors Liability on 888-819-1228.

Avatar for John Brown
Written by: John Brown
John has more than 25 years of experience in the insurance industry. He grew from a star insurance producer to owning one of the largest agencies in the country; he's a reference regarding contractor's insurance, commercial insurance, and builders' risk insurance.