Frequently Asked Question:

What Insurance Limits Do You Need to Bid on a Construction Project?

Insurance Type
Related Industries
Construction
Related Coverages

The Short Answer

There’s no standard limit — required insurance and bonding limits come from the contract and the project itself, not a fixed rule. Public and larger private jobs spell out minimum GL, umbrella, auto, and workers’ comp limits in the bid documents, and Liberty reviews your contract to confirm exactly what you need before you bid.

The Full Answer

We scrub the insurance and indemnity sections of your contract to identify required GL per-occurrence and aggregate limits, completed-operations duration, and any special endorsements — including additional insured requirements, primary and noncontributory wording, and waivers of subrogation.

We match umbrella limits to the size and risk of the project. Smaller jobs may only need a modest excess tower; larger GCs, heavy civil contractors, and wrap-up projects often need significantly higher limits to satisfy owner and lender requirements.

We align bonding with contract value, confirming bid, performance, and payment bond requirements, along with any maintenance or warranty bond provisions tied to the contract amount and duration.

We also look at your role on the project. A trade contractor under a wrap-up may only need certain practice limits, while a GC holding the prime contract typically carries higher limits and broader responsibility.

How Liberty helps: Send us the bid documents before you submit, and we’ll flag any limit or endorsement gap between what the contract requires and what your current program provides.

Related Questions

Yes — restaurants process card payment data through point-of-sale systems daily, and a breach affecting customer payment information typically isn’t covered under general liability, which is why cyber liability is now considered standard for the industry.

A restaurant’s own commercial auto policy typically doesn’t cover an employee’s personal vehicle, so restaurants using employee-owned cars for delivery generally need hired and non-owned auto liability coverage.

Typically no — standard business interruption coverage is triggered by direct physical damage to the property, so a closure ordered for a health code violation alone usually isn’t a covered event unless it follows a covered loss.

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