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Pikorua Security

Demolition subcontractors

Demolition subcontractor COI requirements

Demolition contractors take buildings apart next to buildings that are staying. Their policies are among the most restricted in construction: XCU exclusions, asbestos and lead exclusions, total pollution wording and adjacent property limitations. Pikorua Security's 2026 benchmark puts demolition at 81% deficient on first review, second only to roofing.

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Demolition audit

Cornerstone Demolition Services LLC

Maple Grove Elementary Addition

Deficient
CGL policy
GL 7206-9931-15
AM Best
A- VIII
Carrier
Bayline Specialty Insurance Co.
  • DeficientManuscript

    Adjacent structures exclusion (DM 118) on a party-wall project.

  • DeficientCPL

    Pollution policy excludes asbestos and lead.

  • DeficientXCU

    Collapse exclusion attached to the CGL.

15 rules checked, 3 deficient. Scanned Oct 7, 2026, 3:41 PM ET. Notice sent to sub and broker.
of demolition subcontractor COI packets are deficient on first review
81%
of demolition subcontractor COI packets are deficient on first review
Pikorua Security 2026 Benchmark
trade rank by defect rate, 10 points above the all-trade average
2 of 14
trade rank by defect rate, 10 points above the all-trade average
Pikorua Security 2026 Benchmark
of subcontractor and vendor COIs contain material coverage deficiencies or missing endorsements on first review
71%
of subcontractor and vendor COIs contain material coverage deficiencies or missing endorsements on first review
AGC Risk Committee Audit
of COIs claiming additional insured status fail to attach the CG 20 37 completed operations endorsement
64%
of COIs claiming additional insured status fail to attach the CG 20 37 completed operations endorsement
IRMI Construction Risk Survey

Typical exhibit

Typical demolition insurance requirements

The limits Pikorua Security's demolition rule template starts from. Your subcontract exhibit controls; set it once per project and every demolition certificate is checked against it.
Rules in template
15
Hazard tier
Severe
Typical insurance requirements for demolition subcontractors
CoverageTypical limitWhat to check
Commercial general liability (CG 00 01, occurrence)$2,000,000 each occurrence / $4,000,000 general aggregateNo XCU, adjacent property or demolition-of-structures exclusion. Per-project aggregate via CG 25 03.
Products-completed operations aggregate$2,000,000Shorter tail than structural trades, but damage to adjacent structures can surface after the sub demobilizes.
Business auto liability$2,000,000 combined single limitRoll-off and dump trucks hauling debris on public roads.
Umbrella / excess liability$10,000,000 each occurrence and aggregateRaise to $25,000,000 for urban structural demolition beside occupied buildings.
Workers compensation / employer's liabilityStatutory / $1,000,000 each accident, $1,000,000 disease each employee, $1,000,000 disease policy limitDemolition carries some of the highest WC rates in construction.
Contractors pollution liability$5,000,000 each condition / $5,000,000 aggregateAsbestos, lead, PCBs and mold disturbed during demolition, plus transportation of debris.
Contractor's equipment (inland marine)Replacement cost of excavators, shears and processorsHigh-value attachments on site are a theft and damage exposure.

Endorsement checklist

Forms to see attached, not just checked

A Y in the ADDL INSD column is not an endorsement. Ask for each form below by number and edition, and read the demolition sub's schedule of forms against it.

Exclusion watchlist

Exclusions that void demolition coverage

These never appear on an ACORD 25. They sit in the declarations schedule of forms and the endorsement pages, which is where Pikorua Security reads.
  • Red flag

    Explosion, collapse and underground (XCU) exclusion

    Carrier XCU endorsements remove collapse and explosion losses. Structural demolition is the controlled collapse of a building, and implosion work is explosion by definition.

  • Red flag

    Asbestos, lead and total pollution exclusions (CG 21 49)

    Most CGL policies exclude asbestos and lead, and a total pollution exclusion removes the remaining carve-backs. Before demolition, federal asbestos rules require an inspection, and disturbed materials are a pollution claim unless a CPL policy responds.

  • Red flag

    Adjacent property or damage to existing structures exclusion

    Carrier forms that exclude damage to buildings next to the work. For a demolition contractor, the neighboring building is the primary third-party property exposure.

  • Red flag

    CG 21 53 Designated ongoing operations (implosion, blasting)

    Carriers may schedule blasting, implosion or structural demolition above a stated height out of the policy. A general demolition policy may not cover the method your project uses.

Why demolition COIs fail so often

Carriers that write demolition contractors manage the risk with exclusions: collapse, explosion, adjacent property, asbestos, lead and pollution. Each one can remove an exposure the GC is relying on the demolition sub to carry. None of them appear on the ACORD 25. A demolition certificate showing $2,000,000 and $4,000,000 can sit on a policy that excludes the collapse of the structure being demolished and damage to the building next door.

Pikorua Security's demolition template reads the schedule of forms and the text of manuscript endorsements for collapse, explosion, adjacent structure, asbestos, lead and pollution language. Each finding is cited by form number and page in the deficiency notice, so the sub's broker knows exactly which endorsement must come off or which policy must be added.

Hazardous materials before the first pick

OSHA's demolition standard (29 CFR 1926 Subpart T) requires an engineering survey before demolition starts, and federal asbestos rules require an inspection for asbestos-containing material. Abatement is often a separate contractor, but residual asbestos, lead paint, PCB-containing materials and mold are routinely disturbed during demolition itself.

  • Require contractors pollution liability with asbestos and lead coverage, not just a general CPL.
  • Add transportation pollution coverage when the sub hauls debris.
  • Collect the abatement contractor's CPL and license separately, and link the two vendors in Pikorua Security.

Adjacent buildings and the neighbor's claim

Urban demolition means party walls, shared foundations and occupied neighbors. Vibration, debris and undermining can damage adjacent buildings, and the neighbor will name the owner and GC. The demolition sub's CGL must cover damage to existing adjacent structures without a carve-out, and the GC needs ongoing and completed operations additional insured status to tender that claim.

Before mobilization, set the adjacent structure flag in the project rule template. Pikorua Security then requires the absence of adjacent property exclusions and checks that the umbrella follows form over the CGL without a demolition restriction.

How to verify a demolition sub's COI

A manual review of one COI and its endorsement packet takes 25 to 40 min (CFMA Time Study). These are the six checks, in the order Pikorua Security runs them.

  1. 1

    Match the named insured to the subcontract

    Compare the named insured on the ACORD 25 with the legal entity that signed the demolition subcontract, including the LLC or Inc. suffix. A trade name or DBA is not the contracting entity, and additional insured coverage follows the policy's named insured.

  2. 2

    Check limits against your demolition exhibit

    Confirm commercial general liability of $2,000,000 each occurrence / $4,000,000 general aggregate, an umbrella of $10,000,000 that follows form over CGL, auto and employer's liability, and statutory workers compensation. Then confirm contractors pollution liability and contractor's equipment are evidenced, because they do not appear on a standard ACORD 25.

  3. 3

    Read the endorsement pages, not the checkboxes

    A Y in the ADDL INSD or SUBR WVD column is not an endorsement. Confirm CG 20 10, CG 20 37, CG 20 01, CG 24 04, WC 00 03 13, CA 20 48, CG 25 03 and CG 20 38 are attached as forms, and that the ongoing and completed operations forms share the same edition date.

  4. 4

    Scan the schedule of forms for demolition exclusions

    Look for explosion, collapse and underground (XCU) exclusion, asbestos, lead and total pollution exclusions, adjacent property or damage to existing structures exclusion and CG 21 53 Designated ongoing operations. None of these appear on the certificate; they sit in the declarations schedule of forms and the endorsement pages.

  5. 5

    Check carrier ratings and policy dates

    Confirm each carrier is rated A- VII or better by AM Best and that no policy expires before the demolition scope and its completed operations period are finished. Set renewal reminders at 60, 30, 15 and 0 days.

  6. 6

    Hold payment and site access until resolved

    Keep the demolition sub's pay applications and jobsite badges on hold until every finding is resolved, then file the verified packet so it is ready if you ever need to tender a claim.

Try it

Is this demolition COI compliant?

Toggle what Cornerstone Demolition Services LLC's packet shows. The verdict updates the way Pikorua Security's demolition template scores it.

What the packet from Cornerstone Demolition Services LLC shows

  • Carrier or manuscript form. Red flag if present.

  • Damage to existing structures. Red flag if present.

  • Plus debris transportation

  • Follows form, no demolition restriction

  • Matching editions

  • Both GL and WC

Switch on = present in the packet. Switch off = missing.

Deficient: 3 findings

  • XCU or collapse exclusion attached

    Collapse and explosion losses are excluded.

  • Adjacent property exclusion

    Neighboring building damage is excluded.

  • CPL covers asbestos and lead

    Disturbed hazardous materials are uninsured.

Pikorua Security would send a deficiency notice to the sub and its broker citing each item, and hold payment until a corrected endorsement arrives.

Related trades

All 14 trade guides

Questions

Demolition COI questions

What insurance should a demolition subcontractor carry?
A typical exhibit asks for CGL of $2,000,000 each occurrence and $4,000,000 aggregate, $2,000,000 auto, a $10,000,000 or larger umbrella, statutory WC with $1,000,000 employer's liability, and contractors pollution liability that covers asbestos and lead. The policies should carry no XCU, adjacent property or demolition exclusions.
Why do demolition COIs have such a high defect rate?
Carriers restrict demolition policies heavily with collapse, explosion, adjacent property, asbestos, lead and pollution exclusions. These never appear on a certificate. Pikorua Security's 2026 benchmark puts demolition at 81% deficient on first review, second only to roofing.
Does a demolition contractor's general liability cover asbestos?
Usually not. Most CGL policies exclude asbestos and lead, often through a total pollution exclusion plus specific asbestos wording. A contractors pollution liability policy that expressly covers asbestos and lead is the coverage that responds when demolition disturbs those materials.

14-day free production trial

Check every demolition sub's endorsements before they mobilize.

Upload your current demolition certificates. Pikorua Security reads the endorsement pages, applies the demolition template and shows every hidden gap in 10 minutes.

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