# Project-Specific Liability Insurance for Developers and General Contractors

URL: https://mycontractorsinsurancequote.com/project-specific-liability-insurance
Updated: 2026-10-29 · Reviewed by the Principal, Gleason Insurance Brokers, LLC
Publisher: My Contractors Insurance Quote, a website of Gleason Insurance Brokers, LLC

Project-specific liability insurance is general liability, and often excess, written for one defined construction project instead of a contractor's whole book of work. Its value depends on four details: who is a named insured, how the project is defined, whether the aggregate is dedicated to that project and how long completed operations protection runs after turnover.

## Key Decision Points
- A project policy is only as useful as its project definition, its named insureds and its completed operations term.
- A per-project aggregate endorsement typically protects ongoing-operations limits; completed operations losses often draw on a separate aggregate.
- Subcontractor exclusions and conditions can quietly shift risk back to the developer or GC.
- Excess limits respond only as the excess wording and the scheduled underlying policies allow.
- Indemnity and additional insured requests run into anti-indemnity statutes in all four states.

## What a Project-Specific Policy Is

A project-specific liability policy is a commercial general liability placement tied to one job site, one development phase or one set of buildings. Instead of sharing limits with every other job a contractor runs that year, the limits are written around a single project, and the policy term is usually matched to the construction schedule plus a completed operations period after turnover.

Developers and owners often arrange it when a lender, a partner or a public agency wants limits it can see and rely on. General contractors arrange it when the contract asks for dedicated limits or when one large job would otherwise erode the annual program that protects the rest of the company. Infrastructure and site contractors see it on long linear projects where a single occurrence could touch many properties.

It is not the same thing as a wrap-up. A project-specific policy may insure only the sponsoring party and the parties it names, while a wrap-up typically enrolls the contractors and subcontractors on the job. That difference drives everything else on this page.

Project liability is one of several lines a developer or GC weighs together, alongside the other [construction project insurance and surety lines](https://mycontractorsinsurancequote.com/coverages).

## Named Insureds and the Project Definition

The first question an underwriter and a broker ask is who the policy is for. A development entity, its managing member, the GC and sometimes affiliated property entities may each need named insured status, or they may be added as additional insureds with narrower rights. A party that is only an additional insured typically has protection limited to the scope the endorsement describes, which may stop at the end of ongoing work.

The project definition matters just as much. It usually names the site address or legal description, the scope of work and sometimes the contract value. If the scope changes, a phase is added or off-site improvements such as utility extensions and street work are built under a separate agreement, those operations may fall outside the defined project. Ask whether the definition includes staging areas, haul routes and off-site improvements required by the conditions of approval.

Entity structure is where developers most often get caught. A single-purpose entity formed after the policy is bound, or a land-holding entity that never appears on the declarations, can leave a gap that only shows up when a claim names it.

Entity structure, phasing and lender exhibits are covered in more depth in our guide to [insurance for developers and subdividers](https://mycontractorsinsurancequote.com/who-we-serve/developers-subdividers).

### Illustrative scenario: Tilt-Wall Distribution Building in Dallas County

A Texas general contractor is building a speculative tilt-wall distribution building for a private owner. The owner's form contract asks the GC to defend and indemnify the owner for claims caused in part by the owner's own negligence and to name the owner as an additional insured to the same extent. Under Texas Insurance Code §151.102 and §151.104, those provisions are generally void to the extent they reach the owner's own negligence, apart from the exception for claims by the GC's own employees. The GC's annual policy carries a per-project aggregate endorsement, but its completed operations aggregate is shared across every finished job. The owner's lender wants limits that remain dedicated to this building after turnover. A project-specific primary and excess placement with a completed operations term sized to the Texas 10-year repose period may answer the lender, while the indemnity and additional insured language is rewritten to fit Chapter 151.

## How the Per-Project Aggregate Works

A general aggregate is the most a policy pays for most kinds of claims during its term. On an annual contractor policy, a bad year on one job can use up the aggregate that every other job depends on. Contracts and lenders often ask for an aggregate that applies separately to the project, and the standard way to do that on an annual policy is an endorsement scheduling the project.

The ISO endorsement Designated Construction Project(s) General Aggregate Limit (CG 25 03, 05 09 edition, as reproduced by the New York Office of General Services) gives each scheduled project its own aggregate equal to the declarations amount. The detail buyers miss is the wording: the separate aggregate applies to damages attributable only to ongoing operations at a single designated project. Payments for bodily injury or property damage within the products-completed operations hazard reduce the products-completed operations aggregate instead, and claims that cannot be tied to one designated project draw on the policy's general aggregate.

That means a per-project aggregate endorsement on an annual policy may protect limits during construction while leaving completed operations limits shared across every job the contractor has finished. A true project-specific policy can avoid that sharing, but only if its own completed operations aggregate and term are written for the project. Read the endorsement and the declarations together, and ask the carrier which aggregate a defect claim after turnover would reduce.

Whether a job belongs on its own policy or on the annual program with this endorsement is weighed in [choosing between project-specific GL and the annual policy](https://mycontractorsinsurancequote.com/project-specific-liability-insurance/project-specific-gl-vs-annual-gl).

## Ongoing Versus Completed Operations

Construction liability has two phases. Ongoing operations are the claims that arise while work is underway: a passerby hurt near the site, damage to a neighbor's property from excavation, a crane incident. Completed operations are claims that arise after the work is finished and turned over, which on construction projects often means alleged defects that cause property damage or injury.

The distinction matters because the two phases are often subject to separate aggregates, different additional insured endorsements and different durations. On most projects the larger financial exposure sits in the completed operations phase, because defect claims can surface years after occupancy. California, Texas, Arizona and Nevada each have statutes of repose that set outer limits on many of those claims, and those time frames shape how long a project policy's completed operations term should run.

A project policy that ends at substantial completion, or that includes only a short completed operations extension, may leave the developer and GC relying on whatever annual policies are in force years later.

The aggregate, duration and defect questions are explained step by step in [how completed operations coverage works on a project](https://mycontractorsinsurancequote.com/project-specific-liability-insurance/completed-operations).

## Subcontractor Forms, Conditions and Exclusions

Many contractor liability forms now carry subcontractor conditions. Some require the named insured to obtain certificates, indemnity agreements and additional insured status from every subcontractor; if the documentation is missing, the carrier may deny or limit coverage for claims arising from that subcontractor's work. Others exclude work performed by subcontractors altogether, or exclude specific trades such as roofing, structural or excavation work.

Residential projects draw more restrictive language. Exclusions for multifamily, condominium or tract work, for earth movement and subsidence, and for prior or continuing damage are common on the market today, and each can remove the exposure a developer most needs protected. Exterior insulation and finish systems, water intrusion and mold language deserve a line-by-line read on any podium or wood-frame residential project.

The practical point is that a project policy and the subcontract program have to be designed together. If the policy conditions require something the subcontracts do not demand, the gap belongs to the developer or GC.

Certificates, endorsements, waivers and records retention are laid out in our guide to [documenting subcontractor risk transfer](https://mycontractorsinsurancequote.com/resources/completed-operations-and-subcontractor-work).

## Primary, Excess Attachment and Follow-Form Wording

Project limits are usually built in layers. A primary general liability policy sits at the bottom, and one or more excess policies attach above it. An excess layer typically responds only after the scheduled underlying limits are paid, and only to the extent its own wording allows.

Follow-form excess generally adopts the terms of the underlying policy, but many excess forms follow form except where they say otherwise, and those exceptions can include residential work, professional services, pollution and specific additional insured terms. Ask whether each excess layer recognizes the same named insureds, the same project definition and the same completed operations term as the primary. If the primary carries a per-project aggregate but the excess applies a single aggregate across the insured's operations, the excess may not track the project the way the contract assumes.

Attachment also depends on the underlying schedule. Excess carriers often require that employers liability and auto liability sit underneath, which can matter when a contractor's own policies are scheduled as underlying to a project placement.

How the primary and each excess layer are typically priced is explained in [what drives project liability and excess premium](https://mycontractorsinsurancequote.com/project-specific-liability-insurance/cost).

## Documented Risk Transfer and Anti-Indemnity Statutes

Risk transfer on a project is a chain: the owner's contract with the GC, the GC's subcontracts and the insurance each party carries. Indemnity clauses shift liability by contract, and additional insured endorsements give the upstream party direct rights under a downstream policy. Both are limited by statute in the three launch states.

California Civil Code §2782 voids construction indemnity for the promisee's sole negligence or willful misconduct, and for contracts entered into on or after January 1, 2013, limits indemnity for an owner's or public agency's active negligence. Section 2782.05 limits a subcontractor's indemnity for a GC's active negligence on many commercial contracts, but it does not apply to wrap-up programs or to provisions requiring the subcontractor to buy insurance, including additional insured endorsements for ongoing and completed operations. Texas Insurance Code §151.102 voids indemnity for the indemnitee's own negligence, with an exception for claims by the indemnitor's employees, and §151.104 voids additional insured requirements to the same extent. Arizona's A.R.S. §32-1159 voids indemnity for the promisee's sole negligence in private construction contracts.

These statutes have exceptions and effective dates, and Texas carves out single-family, townhouse and duplex work. Contract language should be reviewed by counsel, and the insurance requirements should be written so they match what the statutes allow.

Where these indemnity and additional insured clauses appear in an owner contract is shown in our guide to [reading a contract insurance exhibit line by line](https://mycontractorsinsurancequote.com/insights/reading-a-contract-insurance-exhibit).

## When a Project Policy Can Beat an Annual Practice Policy

**Annual, Project-Specific and Wrap-Up Liability Compared**

| Question | Annual practice GL | Project-specific GL | OCIP or CCIP wrap-up |
| --- | --- | --- | --- |
| Who buys it | Each contractor, for all of its work in the policy year | One contractor or the owner, for one named project | The owner (OCIP) or the general contractor (CCIP), for one project or a rolling program |
| Who it insures | The buying contractor, plus additional insureds by endorsement | The parties named for that project, while subcontractors typically carry their own | Enrolled contractors of every tier, typically for their work at the site |
| How the aggregate works | Shared across every job that year unless a per-project aggregate endorsement applies | Dedicated to the one project | Dedicated to the program's projects as the policy defines them |
| Completed operations | Typically answered by whichever annual policy is in force when the injury or damage occurs | Typically a stated term after completion, written into the policy | Typically an extended term written into the program |
| Where it tends to fit | A steady volume of similar jobs | A single large or contract-driven project | Large projects where the owner or GC wants one program for every enrolled trade |

Terms vary by carrier guidelines, programs, project and individual risk, subject to terms.

A contractor's annual policy is designed for a volume of work, not one job. A project-specific placement tends to make sense when one or more of these is true: the project is large relative to the contractor's annual volume; the contract or lender requires limits that are not shared; the work is residential or condominium construction that the annual policy excludes or restricts; or the developer wants completed operations limits that will remain available for the full repose period rather than depending on renewals years from now.

It can make less sense when the project is modest, when the contractor's annual program already carries a per-project aggregate and acceptable completed operations terms, or when the owner is arranging a wrap-up that enrolls the contractors directly. Cost also enters, because a project policy is often priced on construction value and may require the full term's premium up front.

None of these factors is decisive alone. The comparison should be made on the actual forms, with the contract and lender requirements in hand.

If the owner or GC is also weighing enrollment of every contractor, compare the two approaches in [wrap-up or project-specific liability](https://mycontractorsinsurancequote.com/resources/ocip-ccip-vs-project-liability).

## Retained Layers: Deductibles, SIRs and Captives

A project-specific policy sets dedicated limits for one job. An established firm may also retain part of its ongoing liability across all of its work through a large deductible, a self-insured retention or a captive. Those choices answer a different question from a project policy, and they can sit beside it.

How those retained-layer options compare is explained in [captive, large deductible or self-insured retention](https://mycontractorsinsurancequote.com/resources/captive-vs-large-deductible).

## Work on or Near Railroad Property

Railroads and rail transit agencies typically require a separate railroad protective liability policy naming the railroad, plus endorsements on the contractor's own general liability, before they grant entry. Limits and forms differ by railroad and by type of work, so the current exhibit is confirmed for each job.

Those requirements are explained under [railroad protective liability insurance](https://mycontractorsinsurancequote.com/project-specific-liability-insurance/railroad-protective-liability).

## What Underwriters Want to See

Underwriters price project liability on the project, not only on the contractor. Expect to provide the site plan, the scope and schedule, construction value, the delivery method, the contract or draft contract, the subcontract insurance requirements and the GC's loss history. For residential work, they often ask for the entity structure, whether units will be sold or rented and how homeowner association turnover is handled.

A submission that answers those questions before the underwriter asks tends to reach more carriers and yields terms that are easier to compare. The same package usually feeds the builders risk, pollution and surety submissions for the same project.

The full list of documents and exhibits to gather is in our [pre-bid project insurance checklist](https://mycontractorsinsurancequote.com/resources/project-insurance-checklist).

## Before You Ask for a Quote

### What to Gather
- Every entity that needs named insured status, including any single-purpose entity
- Project definition: site description, scope, phases and off-site improvements
- Owner contract, draft subcontract and the insurance exhibit for each
- Lender insurance requirements and any loan agreement insurance exhibit
- GC loss runs and a list of current and completed projects
- Current annual GL and excess forms, including any per-project aggregate endorsement

### What to Ask the Insurer or Surety
- Which aggregate would a defect claim after turnover reduce?
- Does the project definition include off-site and phased work?
- Which subcontractor conditions or exclusions apply, and what documents do they require?
- Does each excess layer follow the primary's named insureds, project definition and completed operations term?
- How long does the completed operations term run, and can it be extended?
- Are residential, condominium or earth movement exclusions on the form?

## Broker Notes

**Quick Answer:** Project-specific liability is GL and often excess written for one defined project, with limits that are not shared with a contractor's other jobs. Its value turns on named insureds, the project definition, the aggregate structure and the completed operations term.

**Common Mistake:** Assuming a per-project aggregate endorsement protects completed operations. The ISO form applies the separate aggregate to ongoing operations at the designated project; completed operations claims typically draw on a separate, shared aggregate.

**Broker Perspective:** A broker reads the subcontractor conditions, the excess follow-form exceptions and the project definition against the actual contracts before comparing price.

**Coverage Impact:** Whether a claim is paid often depends on whether the right entity is named, the work falls inside the project definition and subcontractor documentation meets the policy's conditions.

## Questions Buyers Ask

### Who should be a named insured on a project-specific GL policy?

Usually the party sponsoring the policy and any related entities that could be sued over the project, such as the development entity, its managing member and sometimes the GC. Additional insured status is narrower and may stop at the end of ongoing work. List every entity before binding, including a single-purpose entity formed late, because adding one after a claim is often not possible.

### Does a per-project aggregate endorsement mean my project has its own limits after it is finished?

Not necessarily. The ISO designated construction project aggregate endorsement applies the separate aggregate to ongoing operations at the scheduled project. Claims within the products-completed operations hazard typically reduce the policy's products-completed operations aggregate, which may be shared with every other completed job. Ask the carrier how its specific endorsement treats completed work.

### Can an owner require my subcontractors to indemnify the owner for the owner's own negligence?

In all three launch states, statutes limit that. California Civil Code §2782 and §2782.05, Texas Insurance Code Chapter 151 and Arizona's A.R.S. §32-1159 each void certain indemnity provisions, with differing scope, exceptions and effective dates. Have counsel review the clause, and align the insurance exhibit so it does not demand what the statute voids.

### Will an excess policy follow every term of the project's primary GL?

Only where its wording says so. Many excess forms follow form except for listed exclusions or conditions, which can include residential work, pollution or additional insured terms. Confirm that each layer recognizes the same named insureds, project definition and completed operations term, and that its aggregate structure matches the primary.

### Is project-specific GL worth it on a mid-size commercial job?

It depends on the contract, the lender and the contractor's annual program. If the annual policy already carries acceptable per-project and completed operations terms and the contract does not demand dedicated limits, it may not be needed. When the job is large relative to annual volume or the forms restrict the work type, a project placement is worth pricing.

## Official Sources

1. [ISO CG 25 03 05 09, Designated Construction Project(s) General Aggregate Limit (form text as published in a state contract exhibit)](https://ogs.ny.gov/spc-exhibit-21), New York State Office of General Services. Separate aggregate applies to ongoing operations at a designated project; products-completed operations payments reduce the products-completed operations aggregate; unattributable claims reduce the general aggregate. Verified 2026-10-23.
2. [Cal. Civil Code §2782 (construction indemnity limits)](https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CIV&sectionNum=2782), California Legislative Information. Indemnity for the promisee's sole negligence or willful misconduct is void; owner and public agency active-negligence limits for contracts on or after January 1, 2013. Verified 2026-10-23.
3. [Cal. Civil Code §2782.05 (subcontractor indemnity, commercial contracts)](https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CIV&sectionNum=2782.05), California Legislative Information. Limits subcontractor indemnity for a GC's active negligence; does not apply to wrap-ups or to requirements to buy insurance, including additional insured endorsements for ongoing and completed operations. Verified 2026-10-23.
4. [Tex. Ins. Code ch. 151 (consolidated insurance programs; indemnity and additional insured limits)](https://statutes.capitol.texas.gov/Docs/IN/htm/IN.151.htm), Texas Legislature (Texas Constitution and Statutes). §151.102 voids indemnity for the indemnitee's own negligence; §151.103 employee-claim exception; §151.104 additional insured limits; §151.105 single-family, townhouse and duplex exclusion. Verified 2026-10-23.
5. [A.R.S. §32-1159 (indemnity agreements in construction contracts)](https://www.azleg.gov/ars/32/01159.htm), Arizona State Legislature. Indemnity for the promisee's sole negligence in private construction contracts is void. Verified 2026-10-23.
6. [Tex. Civ. Prac. & Rem. Code §16.009 (construction statute of repose)](https://statutes.capitol.texas.gov/Docs/CP/htm/CP.16.htm), Texas Legislature (Texas Constitution and Statutes). Ten-year repose period from substantial completion for persons who construct or repair improvements, used in the scenario. Verified 2026-10-23.

## Related Decisions

- [risk retention groups for contractors](https://mycontractorsinsurancequote.com/resources/risk-retention-groups-for-contractors)
- [completed operations coverage on projects](https://mycontractorsinsurancequote.com/project-specific-liability-insurance/completed-operations)
- [OCIP and CCIP wrap-up insurance](https://mycontractorsinsurancequote.com/wrap-up-insurance)
- [project insurance for general contractors](https://mycontractorsinsurancequote.com/who-we-serve/general-contractors)
- [project liability for civil and utility contractors](https://mycontractorsinsurancequote.com/who-we-serve/civil-underground-utilities)
- [lender insurance requirements](https://mycontractorsinsurancequote.com/resources/lender-insurance-requirements)

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Contract and insurance reviews are a courtesy service that may be available at times, depending on our workload and on the size, timing and complexity of the project. A review is not guaranteed and is limited to insurance considerations. It is not legal advice and is not a substitute for advice from your own legal counsel, which you may need before signing a contract or obtaining coverage.

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