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Addressing construction insurance disputes

On Behalf of | Aug 31, 2023 | Construction Law

Construction insurance is intended to provide coverage for contractors, builders and property owners who are faced with risks during a construction project.

Common coverage

There are several items that construction insurance usually covers. The first provides coverage for damage to the construction site. This could include damage or loss of a building or equipment. It may also cover damage caused by fire and natural disasters, as well as for theft.

It’s common that the policy will also cover injury to third parties or for damage to a third party’s property. Some policies also cover project interruptions, such as when a project is delayed, and it causes lost income or additional expenses for the project.

If the construction project has an environmental impact, the policy may cover claims for environmental damage or pollution. Finally, if tools or equipment are lost or damaged at the construction site, the policy may cover those items also.


Builders may encounter disputes with their insurance company over coverage. One of the most frequent disputes arises because the insurance company denies coverage for a claim that is excluded under the policy, or it does not agree with how the damage occurred.

The policyholder and the insurance company may disagree about how much should be paid to a third party, like a neighbor or pedestrian who is injured. Also, if the insurance company believes that the policyholder misrepresented information on the application, that may also lead to a dispute.