By Tahir Abbas, Editor · Last updated 1 November 2026
Construction insurance covers the risks of building work: damage to the works in progress, injury to workers and the public, delays from insured events, and liability for defects. A single site accident or a fire during construction can wipe out a project’s budget, so cover is usually a condition of the contract.
This guide explains what construction insurance typically covers, what it leaves out, who it suits, and how to compare policies before you buy.
What construction insurance typically covers
- Contract works: damage to the building under construction, materials and temporary works
- Public liability for injuries and damage to third parties on and around the site
- Employers’ liability for workers on site, where included
- Plant and equipment, owned or hired, where included
- Delay in start-up losses after an insured event, where included
What construction insurance typically does not cover
- Defective design or workmanship itself, though resulting damage may be covered
- Wear and tear and gradual deterioration
- Work outside the contract’s scope or period
- Deliberate acts and non-compliance with safety rules
Who construction insurance is for
Contractors, subcontractors, developers, self-builders and anyone commissioning building work. The main contractor usually arranges the core cover, but subcontractors need their own liability and plant cover.
How to choose and compare construction insurance
- Match the contract works sum to the full rebuild value, including materials on site
- Check who the policy names — employer, contractor and subcontractors
- Confirm the policy period covers the build and the defects liability period
- Review exclusions for your type of work, such as deep excavation or height work
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Sources and Disclosure
This guide is general information, not financial advice. Plan features described here are general and vary by insurer and state; always read the sample policy before you buy. For the rules governing insurance in your state, see the consumer resources of the National Association of Insurance Commissioners (NAIC). Disclosure: Being Insurance is an independent comparison site. We may earn a commission when you buy through links on this page. That never changes which companies we list or the order we present them in.