Reading a Construction Liability Policy Before a Claim Arrives

Reviewed September 7, 2026.

A commercial general liability policy is not a promise to cover every construction loss. Read its coverage grants, definitions, exclusions, conditions and endorsements together before pricing the job.

Focus on the actual wording

Employee-injury, cross-liability, subcontractor, residential-work, height and designated-operations exclusions differ. The wording may distinguish the named insured, any insured and an additional insured. Do not assume one exclusion has the same effect in every policy.

Likewise, an agreement to indemnify another party does not automatically create insurance coverage. Contractual-liability provisions and any insured-contract exception must be examined alongside the indemnity agreement. A policy's subcontractor conditions may require particular documentation; there is no universal rule that every New York policy denies coverage whenever a written subcontract is missing.

Check endorsements, not just certificates

The Department of Financial Services explains that a certificate does not confer rights beyond the policy. Obtain the endorsements supporting additional-insured status and verify their conditions, effective dates and scope.

Discuss identified gaps with the broker and counsel before work starts. Keep written coverage requests and the final issued documents, and recheck the program at renewal or when the scope changes.

Kushnick Pallaci PLLC assists clients throughout New York with construction insurance policy review and coverage disputes. Contact 631-752-7100 or vtp@kushnicklaw.com.

Attorney Advertising. General information, not legal advice.