three construction planners looking at architectural plans on job site

Preventing Construction Insurance Losses

Insurance losses are more than just a minor setback. A large loss can destroy your business completely. Here are some considerations for you when it comes to preventing construction insurance losses:


Creating a realistic timeline can help to prevent construction insurance loss. Claims on projects are far more common when that project is behind schedule or was following an unreasonable timeline. Engaging an insurance agent or wholesale broker that specializes in construction will help to guard against setting unrealistic timelines for your project. A compressed timeline will often give an underwriter the impression of greater risk, causing them to charge more for coverage.


Contractors must produce documentation proving that they have required insurance coverage before they can begin work. Problems can come about when that certification looks adequate and actually is not. Stipulating the specific coverage grants, unacceptable exclusions, and limits for each policy and having a knowledgeable insurance broker review all documentation will help you to prevent construction insurance losses. 

Subcontractor Responsibilities

Subcontractors need to be held responsible for some portion of your deductible for any losses caused or contributed to by them. They should also be required to name general contractors as additional insureds on their policy, so that losses caused by that subcontractor can be pushed onto their insurance policy, instead of the owner’s. 

Written Agreement

It is important to have written contractual agreements with your contractor that contain “hold harmless” or indemnity agreements that will protect both the contractor and the owner for losses. 

Cost Cutting

Insurance premiums are based on the cost of the property itself. The price ration can vary due to economies of scale, so a smaller project may actually pay more relative to the total cost than a larger project. If contractors cut corners on a larger project, costs can be lowered. On the flip side, using cheap materials can make losses more likely due to breakdown and malfunctions. Consult an insurance expert with a specialty in construction to ensure that proper costs are the ones reported to the carrier. 

Here at Ascension General Contractors, we have the expertise needed to get your project completed in a professional and timely manner, and we are proud to serve the Nashville area.