7 Types of Insurance Coverage for Your Construction Business

Construction insurance is an essential part of any construction business. It provides financial protection to your business in the event of an accident, theft, or damage to property. Without the right coverage, your business could be financially devastated by a single event. If you’re in the construction business, it’s important to understand the types of insurance policies available and how they can be used to protect your business, employees, and contractors.

1. General Liability Insurance

General liability insurance is one of the most common types of construction insurance. It provides coverage for bodily injury and property damage that occurs on your job site. This type of coverage is essential for any construction business, as it provides protection from third-party claims that could arise from an accident or injury on your job site.

2. Builder’s Risk Insurance

Builder’s risk insurance is designed to protect your construction project from damage or destruction due to unforeseen circumstances. This type of coverage will cover the cost of replacing or repairing materials and equipment, as well as any lost profits due to delays or other issues.

3. Equipment Insurance

Equipment insurance provides coverage for any tools or machinery that are damaged or stolen on the job site. This type of policy is vital for any construction business, as it can protect your business from the financial losses that can occur if expensive equipment is damaged or stolen.

4. Workers’ Compensation Insurance

Workers’ compensation insurance is a must-have for any construction business. It provides coverage for medical expenses, lost wages, and other costs associated with an employee’s injury or illness. Without this type of coverage, you could face significant financial losses if an employee is hurt on the job.

5. Commercial Auto Insurance

Commercial auto insurance is essential for any construction business that uses vehicles for its operations. This type of policy provides coverage for any accidents or damages that occur while operating company vehicles. Without this coverage, your business could be liable for any costs associated with an accident.

6. Pollution Liability Insurance
Pollution liability insurance is an important type of coverage for construction businesses. This policy provides coverage for any damages caused by pollution, such as hazardous materials or chemicals. Without this type of coverage, you could face significant financial losses if there is a pollution-related incident.

7. Contractor License Bonds or Surety Bonds

Contractor license bonds or surety bonds are required in some states for construction businesses. These bonds provide financial protection if a contractor fails to complete a job or causes damage to property. Without this type of bond, you could be held liable for any losses incurred by the customer.


Construction insurance is a critical tool for protecting your business against risks associated with the construction process. So, it’s only fitting to understand the different types of construction insurance available and the extent of coverage they provide. With the right coverage, you can ensure that your business is protected from any unexpected losses that may occur during the course of a construction project.

If you want to thrive in the construction industry, you’ll need a partner who can provide the coverage you need. At Pascal Burke Insurance Brokerage Inc., we specialize in contractor insurance and can help you get the best coverage for your business. We can help you find the right insurance policy that meets your needs and budget, whether it’s worker’s compensation insurance or cheap general liability insurance for contractors. Contact us today, and let us help you protect your business!