School construction and renovation projects are essential for maintaining safe, functional, and modern learning environments. Whether a district is expanding due to enrollment growth, upgrading aging facilities, or making safety improvements, construction activity introduces a level of risk that goes well beyond the worksite itself. When projects occur on active campuses, those risks extend to students, staff, contractors, and district operations.

Without proper planning, construction projects can lead to injuries, property damage, coverage gaps, and costly delays. A proactive risk management approach helps districts protect people, property, and budgets while keeping projects on track.

Understanding the Risks of Construction on School Campuses

One of the most significant concerns during construction is student and staff safety. Active job sites often involve:

• heavy equipment
• temporary barriers
• altered walkways
• changes to emergency exits

Contractor and subcontractor management is another critical area of exposure. Construction projects often involve multiple subcontractors, each with their own insurance policies and responsibilities. In most cases, the general contractor’s insurance is responsible for subcontractors. However, if an ISD takes on a more direct role in managing the project, the district may also be responsible for ensuring subcontractors are properly insured. If insurance requirements are not clearly defined and enforced, districts may find themselves unexpectedly involved in claims arising from contractor injuries or property damage.

Background checks are another key consideration when construction occurs on an active campus. Schools are required to ensure that individuals working on campus meet background screening requirements. While this responsibility typically falls on the contractor, districts should not assume compliance. Verifying that background checks have been completed helps reduce liability and reinforces student safety.

Property and equipment exposure increases during construction as well. Renovation work can heighten the risk of:

• fire
• water damage
• theft of materials or tools.

Existing buildings may be more vulnerable during construction due to open walls, modified systems, or temporary utilities. If insurance coverage is not reviewed in advance, districts may discover gaps between assumed and actual protection.

Construction projects also carry the risk of delays and cost overruns. Weather events, supply chain disruptions, and contractor disputes can push timelines beyond planned completion dates. For schools, delays can disrupt the academic calendar, require temporary learning spaces, and create challenges with bond funding or budget approvals.

Planning Ahead to Reduce Construction-Related Risk

Review Insurance Before Work Begins
Districts should review:

• Builders Risk coverage
• Property policy limits and deductibles
• Whether existing policies respond during construction

Assumptions about coverage often lead to gaps.

Establish Clear Safety Protocols
Best practices include:

• Fencing and controlled access points
• Clear signage and alternate routes
• Coordination between contractors and campus administrators

Require Proper Risk Transfer
Before contracts are signed, districts should confirm:

• Certificates of insurance meet district standards
• Additional insured and waiver of subrogation language is included
• Contract language aligns with insurance requirements

Communicate Early and Often
Construction impacts more than facilities teams. Administrators, teachers, parents, and emergency responders should understand:

• Project timelines
• Changes to campus access
• Emergency procedures during construction

The Role of Risk Advisors in School Construction Projects

Education-focused risk advisors play a key role in helping districts navigate construction and renovation projects. By reviewing insurance coverage, evaluating contracts, and identifying potential exposures early, advisors help districts avoid costly surprises. Their involvement often includes coordinating with architects, contractors, and legal counsel to ensure that risk management considerations are addressed at every stage of the project.

Rather than reacting to incidents after they occur, proactive risk management allows districts to control exposures, reduce claims, and keep construction projects aligned with operational goals.

School construction and renovation projects are a sign of growth and investment in the future, but they require careful oversight to manage the risks involved. By planning early, reviewing insurance and contracts, and maintaining clear communication, districts can protect students, staff, and facilities while keeping projects on schedule and within budget. Thoughtful risk management ensures that progress does not come at the expense of safety or financial stability.

If you have questions about an upcoming project or would like support reviewing coverage and contracts, please contact an INSURICA Insurance & Risk Management Advisor today.