What is Construction Insurance?

Business owners in the construction industry are professionals in their given trades, but even professionals have accidents sometimes. Construction insurance policies give construction workers and companies a way to protect themselves from covered liability suits and physical perils.

Construction insurance is a highly specialized type of commercial insurance that’s designed to meet the unique insurance needs of businesses in the construction industry. Most policies are package policies that combine several coverages together to create a robust network of protection.

What Businesses Need a Construction Policy?

Businesses that are classified by the National American Industry Classification System as being construction companies may need a construction policy. In total, there are more than 1.5 million businesses that fall under the construction sector umbrella.

The NAICS’ listing of construction companies includes many businesses that build structures. A few are:

  • Contractors
  • Residential Remodelers
  • Structural Construction Companies
  • New Building Construction Companies
  • Highway, Street and Bridget Construction Companies
  • Land Subdivision Companies

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What is the NAICS?

The NAICS is the governmental standard for classifying businesses by the work they do. It’s used in the insurance industry to help account for the various levels of risk that different sectors have.

What Coverages Do Construction Policies Offer?

Most construction policies can be adjusted to meet a specific business’ coverage needs, so not all policies offer the same list of protections. Nonetheless, there are many coverages that insurers make widely available through these policies. A few of them are:

Protect Your Business

Do Construction Policies Include Workers Compensation?

What businesses need workers compensation and how this insurance is purchased varies by state. In some states, construction policies may have workers comp among their coverages. In other states, workers comp may be purchased separately if it’s needed.

Can Businesses Cancel Their Construction Policies During Winter?

Businesses in cold climates might want to cancel their insurance policies during the off-season in order to lower their overhead, but completely canceling policies isn’t necessarily a good idea.

Canceling a policy altogether can leave a business’ equipment unprotected and create a coverage gap. Should equipment be damaged while in storage, the business may have to pay out-of-pocket for repairs or new equipment. The coverage gap might lead to higher rates in the future when a new policy is instated.

Rather than canceling a policy, businesses can work with a knowledgeable insurance agent and adjust coverages for the off-season. An agent who specializes in this type of commercial insurance will know how to reduce coverages without leaving equipment unprotected or creating a coverage gap.

How Much Do Construction Policies Cost?

Because so many different businesses need construction policies, the premiums charged for these policies can vary a lot. A few factors that often influence how much a business pays for coverage include:

  • What type of construction a business is involved with
  • Where a business is located
  • How large a business is
  • Whether a business has previously filed insurance claims
  • What coverages and limits a business selects

Comparing quotes with an independent insurance agent is an easy way to find out how much different insurers will charge a particular construction business.

Make Sure You Have the Right Coverage

How Can Businesses Get Construction Insurance?

For help finding construction insurance, contact the experienced and independent agents at World Insurance Associates. Our agents have helped many construction businesses get the coverages they need, and we’re here for your business too.


Meet Your Industry Specialist

Matthew Morris

Principal, Vice President 

Mr. Morris joined World Insurance Associates LLC in 2015 from Wells Fargo Insurance Services where he worked as an Account Executive. He has over 12 years of commercial insurance experience serving a wide range of middle market, upper middle market, and national size accounts.

Prior to Wells Fargo, Mr. Morris acted as an Account Executive/Sales Executive at Frenkel & Company.

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