A Practical Checklist for Managing Construction Insurance Claims

Insurance should be your project’s safety net—not another risk. But when construction insurance claims arise, many owners, contractors, and other professionals are caught flat-footed, unsure how to document damage, communicate with carriers, or enforce their rights.

This post provides a basic overview and practical checklist, drawn from real world construction claims experience, to help you manage insurance claims across different kinds of construction insurance policies, including CGL, Builder’s Risk, OCIP/CCIP, and PL.

Know your Coverage—Before the Loss Happens

Each policy type responds differently, and the wording of different policy forms can dramatically change the coverage you have. Generally speaking:

• CGL: Third-party bodily injury and property damage;

• Builder’s Risk: First-party physical damage during construction;

• OCIP/CCIP: Wrap-up policies with centralized claims handling and shared limits; and

• PL/E&O: Design or professional service failures/negligence.

For each project, you should consider creating a 1-page cheat sheet that summarizes:

• Relevant policies and who and what is covered by them;

• Key exclusions;

• Notice and proof-of-loss deadlines; and

• Broker and carrier contact information.

Document the Claim like it is Already Heading to Court

You won’t receive any money for anything you can’t prove. If these aren’t already part of your standard operating procedures, consider adding them:

Daily Jobsite Reporting

• Assign one person per project to complete and compile daily logs, including weather, crews onsite, material deliveries, safety issues, and unusual events.

• Include photos with date stamps and geolocation metadata (many jobsite apps support this automatically).

Incident Response Protocol

If an incident occurs:

• Take wide and close-up photos of the damage/accident scene immediately.

• Get signed witness statements within 24 hours.

• Complete an internal incident report describing the event, impact, and any response measures taken. If you have an attorney, they should manage the reporting process.

Cost Segregation

When costs start piling up:

• Track them separately from the main project ledger (e.g., via a “Claim” cost code).

• Create a claim-specific backup binder or digital folder to compile:

  • Time and material logs

  • Sub, vendor, and rental/equipment invoices and receipts

  • Receipts for emergency mitigation

  • Correspondence with affected parties

File Naming Conventions

Label claim-related documents using a standardized naming convention like:

[ProjectName]-[IncidentType]-YYYYMMDD-[DocumentType]

(e.g., [DowntownTower-WaterLeak-20250424-Photos])

Submit the Claim Like a Lawyer Would

Claims shouldn’t look like a shoe box of receipts. Organize your initial claim submission like a demand package.

Include:

• A chronology of the event;

• A coverage theory (e.g., “This claim is covered under Section IV of the CGL Policy because it relates to third-party property damage…”);

• An itemized cost breakdown;

• A timeline of correspondence with affected parties; and

• Mitigation steps taken.

Attach:

• All incident reports, logs, and visuals;

• Invoices and receipts tied to line items; and

• A summary of how claim damages were calculated (with markups clearly labeled).

Preemptively address likely insurer questions and objections:

• Is the damage pre-existing? Show “before” photos.

• Is the cost excessive? Attach comparable estimates or rental rate sheets.

• Was the mitigation timely? Attach timestamps from work orders and delivery confirmations.

• If there are overlapping policies and a dispute between them, consider hiring an attorney.

Communicate with Adjusters Strategically

• Confirm receipt of your claim in writing and request a claim number within 48 hours.

• Set calendared follow-ups every 10-14 days.

• Log/take notes of every call and e-mail—include dates, names, and what was said.

Don’t just respond to adjuster requests—get ahead of them:

• Ask: “What additional documentation would you need to evaluate this claim?”

• If you are in Texas and you have not heard from your carrier in 15 days (or 30 days if they are a surplus lines insurer), consider sending a notice under Texas Insurance Code Section 542.055 and/or 542.056, reminding them of their statutory deadlines to acknowledge, investigate, and pay claims.

Escalation

If you’re hitting a wall:

• Demand a written claim acceptance or denial that cites specific policy language;

• Request the full claim file from the adjuster; and

• Engage coverage / claim recovery counsel if you have not already.

Claims Recovery Doesn’t Happen by Accident

Recovering on a construction insurance claim isn’t about luck—it’s about being methodical, organized, and persistent. If you’re dealing with a difficult claim or want to tighten up your internal processes, let’s talk. I help owners, developers, contractors, design professionals, and other construction industry participants get ahead of these insurance issues before they become disasters.

Please reach out if you would like a one-page checklist for help managing your construction insurance claims.