Construction Insurance
made simple

Learn everything about construction insurance

Construction Insurance

General Liability
  • General Liability
  • Product Liability
  • Professional Liability
  • Commercial Property
  • Home-based
  • Other
Under 3 months
  • Under 3 months
  • 3 - 6 months
  • 6 - 12 months
  • 1 - 2 years
  • 2 - 3 years
  • Over 3 years
AB
  • AB
  • BC
  • MB
  • NB
  • NL
  • NS
  • NT
  • NU
  • ON
  • PE
  • QC
  • SK
  • YT
4 Results

Advertiser disclosure

Offers shown here are from third-party advertisers. We are not an agent, representative, or broker of any advertiser, and we don’t endorse or recommend any particular offer. Information is provided by the advertiser and is shown without any representation or warranty from us as to its accuracy or applicability. Each offer is subject to the advertiser’s review, approval, and terms. We receive compensation from companies whose offers are shown here, and that may impact how and where offers appear (and in what order). We don’t include all products or offers out there, but we hope what you see will give you some great options.

#1 Choice
Get a Quote

Zensurance

From $19
Per Month
850
Satisfaction Rating
  • Partner with 50+ providers
  • Get a quoute and buy online
  • Easy, manageable payments
Pros & Cons
Extra Details
Popular
Get a Quote

FoxQuilt

From $20
Per Month
835
Satisfaction Rating
  • Get a quoute and buy online
  • Easy, manageable payments
  • US & Canada coverage
Pros & Cons
Extra Details
Best Value
From $26
Per Month
823
Satisfaction Rating
  • Get your insurance in minutes
  • Easy, manageable payments
  • Industry-specific insurance
Pros & Cons
Extra Details
From $29
Per Month
813
Satisfaction Rating
  • Responsive insurance experts
  • Compare rates and coverages
  • Get the perfect insurance policy
Pros & Cons
Extra Details

Construction Insurance

Construction insurance is a specific protection that covers your site or property while it’s under construction.

It’s only in effect for the duration of the building project, which means that once it’s complete and ready to use for its intended purpose and ready to be occupied, the builder’s risk insurance ends, and the homeowner’s insurance takes effect.

Construction insurance, also commonly known as builder’s risk insurance, protects your project site, including the liability from the start to the end of the building process. 

Who Needs Construction Insurance?

This type of insurance is essential for many types of properties, including commercial and residential. It’s typically purchased for projects for homeowners and business owners to ensure the property, materials, equipment, and related items are protected.

Construction projects that typically require builder’s risk insurance include recreation and sports centers (or community centers), new houses or home construction, commercial buildings, condominiums or apartment buildings, and major renovation projects or additions onto an existing property. 

construction insurance

How Do You Choose a Construction Insurance Provider?

When you review your construction insurance providers, you’ll want to choose a company that meets the needs of the property or building project as best as possible.

Construction specialists and insurance agents can provide options that best cover a property that’s under construction or renovations. While all builder’s risk insurance plans cover standard aspects of your project, you may require extensions to cover more than the specific property. 

The main items or areas of construction insurance include completed and ongoing operation, pollution and clean-up removal, project delays and interruption costs, property coverage, equipment, and materials.

In addition to covering the costs of your construction project, there is liability protection for any injuries or losses due to the building site, damage by an insured incident, vandalism, fire, and theft. 

What Determines the Cost of Builder’s Risk Insurance?

There are many factors that impact the cost of your builder’s risk insurance policy. The amount you pay in premiums is based on the nature of your construction project, location, risk factors, and other factors.

Your insurance provider will also take into consideration the size of the business, past insurance claims, how long the construction project will take to complete, and the types of operations included in the project, including drilling, tunneling, demolition, mining, and snow removal.

construction insurance

Who Benefits from Construction Insurance

If you’re a homeowner, own or operate a commercial construction company, commercial builder, or developer, this type of insurance will protect your site during its building phase. Builder’s risk insurance covers contractors working on renovations and additions to a property until it is completed.

What are Examples of Builder’s Risk Insurance Claims?

What does a claim under construction insurance look like? If a power tool or equipment becomes damaged due to weather conditions, such as high heat or humidity, their repair or replacement may be covered by the insurance policy in order to continue working on the building.

This applies to equipment and materials damaged or destroyed by fire or severe rainfall. 

If you add pollution liability insurance to cover the cost of any damage to nearby land or the environment, this will provide protection in the event there is a toxic spill or leak, a ruptured sewage line, or accidental causing damage to wiring, cables, or land around the construction site.

Commercial general liability insurance, along with construction insurance, protects subcontractors if they mishandle raw materials or equipment in the event there is a collapses part of the building or damage to the property next to the site. 

construction insurance

Construction insurance summary

Construction insurance is essential for every building site, whether it’s a small residential home, an extension to an existing building, or a large construction project, such as a shopping mall or a condominium.

It’s a basic level of protection required for all construction projects to ensure the developer, homeowner, and contractors are protected. The building project is consistently covered for the build duration.

You might also like…

Business Insurance in AlbertaBusiness Insurance in ManitobaBusiness Insurance in British ColumbiaBusiness Insurance in New Brunswick
Business Insurance in Nova ScotiaBusiness Insurance in Newfoundland and LabradorBusiness Insurance in OntarioBusiness Insurance in Prince Edward Island
Business Insurance in QuebecBusiness Insurance in Saskatchewan

Discover Investment Opportunities

Make your money do more.

12 Results

Advertiser disclosure

Offers shown here are from third-party advertisers. We are not an agent, representative, or broker of any advertiser, and we don’t endorse or recommend any particular offer. Information is provided by the advertiser and is shown without any representation or warranty from us as to its accuracy or applicability. Each offer is subject to the advertiser’s review, approval, and terms. We receive compensation from companies whose offers are shown here, and that may impact how and where offers appear (and in what order). We don’t include all products or offers out there, but we hope what you see will give you some great options.

Young investors can trade stocks and ETFs, all for free.
Min Investment
$0
Target Return
Varied
Retire up to 30% wealthier with Questwealth Portfolio.
Min Investment
$1
Target Return
Varied
Get $20 CAD of BTC with promo code: COMPAREWISE
Min Investment
$100
Target Return
4-7%
Buy and sell gold, silver & platinum online at the best price.
Min Investment
$1
Target Return
Varied
Get up to $150 cash bonus
Min Investment
$0
Target Return
Varied
Flexibility with a great return.
Min Investment
$100
Target Return
5.20%
Get a $50 bonus when you sign up and deposit $250.
Min Investment
$50
Target Return
Varied
Buying and securing gold has never beeng more simple and affordable.
Min Investment
$1
Target Return
Varied
High return on a shorter term.
Min Investment
$500
Target Return
4.25%
Get a $100 welcome bonus, when you make your top-up*
Min Investment
$10
Target Return
Varied
A new passive income asset class, peer-to-peer lending.
Min Investment
$1
Target Return
Varied
Sign Up And Access 65+ Cryptocurrencies Instantly
Min Investment
$10
Target Return
Varied

comparewise

September 28, 2023
Fact Checked

Grow your finances today.

By submitting, you agree to comparewise’s terms of use and privacy policy.

FAQs about construction insurance

When does construction insurance start and finish?

Once the bidding begins for your project, the insurance protection also starts. This coverage continues for the duration of the project until the building is complete and ready for its intended use, including occupation by residents or businesses.

Can a builder’s risk insurance policy be customized for various types of properties?

Yes. If your building site is located near a beach and includes unique environmental accommodations or other specifications that require extended coverage, you can add protection to include these items, which better protects the property, equipment, and materials.

Is construction insurance a requirement?

Yes. Construction insurance provides protection from incidents involving liability, injury, and damage to the property and neighboring properties or sites.

What other reasons make insurance coverage important for your business during construction?

Some construction insurance plans offer great flexibility in submitting policy forms, providing customized plan options, and global risk transfer options if you have several building sites or locations for equipment and materials. Insurance providers provide various services with your coverage and additional services that you can add, including engineering consultants, underwriting, and loss control, and provide the most up-to-date global construction industry information from specialists.

Construction Insurance
made simple

Learn everything about construction insurance

You may also like

Cyber liability insurance is fast becoming essential in any business’s risk m...
Contractor liability insurance is an essential protection that general contra...
Professional consultants require protection from errors, omissions, and relat...
When you consider the cost of daycare and expenses for your child(ren), you m...
Directors' and officers' insurance is an essential protection for positions o...
Construction insurance is a specific protection that covers your site or prop...
Commercial property insurance helps business owners rest assured that the ins...
Commercial auto insurance can help businesses save on repair and recovery cos...
Having accountant insurance gives you the opportunity to focus on quality ser...
Builder’s risk insurance, also known as construction insurance, protects buil...
A business interruption can occur at any time and for any number of reasons. ...
As a restaurant owner, you must safeguard your establishment from possible li...
Security service insurance is a protection that covers security personnel and...
Starting a business is a big step in anyone's life and requires a great deal ...
In today's fast-paced business environment, manufacturers, distributors, and ...
As a photographer, you face a variety of risks on a daily basis. Your livelih...
Paralegal insurance protects against legal mistakes. Being a paralegal is not...
Insurance is an essential aspect of protecting your financial well-being, yet...
Manufacturing is a critical and complex industry that requires a variety of r...
Legal expense insurance offers coverage for various types of legal expenses t...