What Are The Types Of Civil Engineering Construction Insurance?

Commercial General Liability Insurance
This type of insurance provides coverage for claims by third parties against the CM/GC and all additional named insured parties. A pedestrian who has an accident while passing by a construction site would be covered under this type of insurance policy.

Builders Risk Insurance
This type of insurance provides coverage against the insured’s loss to the property during the construction process. A break in a water service in the building during the construction process, which damages electrical, mechanical, elevator, and plumbing systems would be covered under this type of insurance policy.

It is a primary coverage rather than against a claim from a third party. One needs to define the policy period for which it is in effect, which could be when the project is completed or a date thereafter.

Errors and Omissions Insurance
This is the professional liability insurance for the CM/GC and design professionals. CM/GCs cannot easily obtain architectural or engineering services Errors and Omission (E&O) coverage. The CM/GC must be careful with this type of insurance, especially if involved with a design-build project.

Environmental Liability Insurance 
This is a specialized insurance policy to cover pollution and hazardous material damages such as asbestos, mold, lead paint, medical waste, fuel oil, etc. The coverage under the commercial general liability (CGL) policy is very limited, and a separate policy with broader environmental coverage is often obtained to deal with these matters.

It is recommended that the owner directly hold the contract for environmental work and provide the insurance policy for the appropriate coverage, with the CM/GC as the additional named insured.

Workers’ Compensation Insurance
Workers’ Compensation (WC) coverage is a state mandatory insurance to provide coverage for the CN/GC’s workers if they are injured while performing their work. It provides for lost wages, medical coverage, and loss of partial or full ability to work because of an accident on the job.

Automobile Coverage
This provides coverage for all automobiles and trucks used in connection with the construction of the project, as well as transporting personnel and material to and from the project site. The insurance company will require the names and drivers license information for all drivers operating vehicles covered under the policy.

If a driver’s report from the Department of Motor Vehicles is not good, that person may be excluded from coverage under the policy, and thus should not drive company vehicles.

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