Construction companies spend thousands on insurance only to discover they’re not covered when claims get filed. Not because policies don’t exist, but because contractors and agents don’t speak the same language.
Treacy Duerfeldt, founder of Construction Insurance Risk Education (CIRE), has spent 20 years working with builders, CFOs, and insurance professionals to demystify construction insurance. His view is that insurance education in the construction industry is broken, full of jargon and misalignment that lead to denied claims and lost money.
“The biggest issue is that contractors and agents don’t speak the same language,” says Duerfeldt. “Builders talk blueprints, brokers talk exclusions. This disconnect leads to confusion, coverage gaps, and finger-pointing when claims go unpaid.”
Aligning Contractor and Agent Language
Contractors and agents don’t speak the same language. Agents discuss exclusions, endorsements, aggregate limits, and subrogation. Contractors understand project timelines, site conditions, and subcontractor management. When these vocabularies don’t align, both sides believe they’ve communicated clearly while fundamental misunderstandings persist.
“CIRE is about aligning those conversations, teaching both sides to understand each other clearly in plain English,” Duerfeldt explains.
These misunderstandings create coverage gaps. A contractor might assume general liability covers employee injuries when workers’ compensation is required. They might believe builder’s risk covers design errors when professional liability is needed. Standard policies might not cover specialized equipment requiring inland marine coverage.
These gaps only surface when claims get filed and denied. Contractors blame agents for not explaining coverage properly. Agents blame contractors for not reading policy language.
Aligning language means teaching contractors how insurance professionals think about risk and teaching agents how contractors actually operate on job sites. When both sides understand each other’s vocabulary, coverage discussions become specific rather than generic.
Shifting Education Upstream Before Policies Are Written
Most construction companies learn about insurance coverage through painful experience. A claim gets filed, the insurer denies it, and the contractor discovers their policy doesn’t cover what they assumed. By the time contractors learn their coverage has gaps, they’re already exposed to losses costing tens or hundreds of thousands of dollars.
“Proactive education helps contractors make better choices, saves money, and reduces risk from day one,” Duerfeldt explains.
Shifting education upstream means helping contractors understand coverage before they purchase policies. It means educating them about common exclusions before they assume coverage exists. It means teaching them how different policy types work together before they discover gaps during claims.
Upstream education also prevents purchasing unnecessary coverage. Contractors who don’t understand insurance sometimes buy redundant policies because they can’t evaluate whether agent recommendations make sense.
Proactive education saves money by preventing denied claims, eliminating unnecessary coverage, and helping contractors implement risk management practices that reduce premiums.
Making Learning Practical Through Real-World Scenarios
Traditional insurance education focuses on policy language and theoretical scenarios that help people pass exams but don’t prepare them for decisions they’ll face on projects.
“At CIRE, we use case studies, common claim scenarios, and everyday language so learners from field superintendents to CFOs can take immediate action that impacts their bottom line,” Duerfeldt explains.
Case studies ground learning in situations that construction professionals recognize. Common claim scenarios prepare contractors for situations they’re likely to encounter.
Everyday language makes concepts accessible. Explaining that aggregate limits, for example, means the total amount an insurer will pay across all claims, is clearer than technical definitions.
“We’re not just insuring buildings, we’re insuring livelihoods,” Duerfeldt notes.
Building a Smarter, More Resilient Construction Industry
“We want to build a smarter, more resilient construction industry,” Duerfeldt concludes. “We have to start by transforming how we teach insurance. Let’s stop paying for insurance we don’t understand and start maximizing the value we deserve.”
Construction companies that understand insurance make informed purchasing decisions that actually protect their businesses. Align contractor and agent language so both sides understand coverage clearly. Shift education upstream before policies are written. Make learning practical through case studies that create immediate action.
When construction companies understand insurance before they need it, they stop losing money on denied claims and build businesses protected against risks that matter.
Connect with Treacy Duerfeldt on LinkedIn for insights on transforming insurance education in the construction industry, or book a consultation to learn how proactive education can save money and reduce risk.
