Claims Can Be Denied for Lack of Documentation
Insurance companies deny construction claims more often than you’d think—and the most common reason? Missing or incomplete documentation.
Whether you’re managing a multimillion-dollar project or a single-home build, failing to document each stage of your job can put your business at risk. Having a clear, comprehensive paper trail isn’t just best practice—it’s often required to secure a successful insurance payout.
Here are the 10 essential construction documents you should have ready to back up any claim and protect your bottom line.
1. Construction Contract & Amendments
Your original construction contract and any signed amendments are the foundation of your project documentation. They prove the scope of work, project responsibilities, and agreed timelines—details insurers rely on to validate your claim.
📝 Tip: Always store signed contracts digitally and securely, with version history for amendments.
2. Change Orders and Variations
Any time the project scope or cost changes, it must be documented in a signed change order. Insurers often want to know the exact conditions at the time of the loss, and undocumented changes can cause confusion or denials.
🛠️ Example: If you added a second floor mid-project, make sure that’s clearly documented with dates and signatures.
3. Certificates of Insurance (COIs)
These documents show that all subcontractors and suppliers carried valid and active insurance policies during their involvement. Without them, your insurer may shift liability back onto you.
🧾 Pro Tip: Request updated COIs from all parties every 6 months on longer builds.
4. Project Permits and Approvals
Missing or expired permits can give insurers a reason to reject claims—especially if the work wasn’t fully compliant. Keep a copy of all approved permits, inspections, and occupancy certificates on file.
🏗️ Remember: No permit = potential claim denial.
5. Inspection Reports
Third-party inspections (code, safety, structural) provide objective proof of quality and compliance. These reports add credibility to your claim and confirm that you followed proper procedures.
📋 Why it matters: A signed-off electrical inspection can disprove allegations of faulty wiring if a fire occurs.
6. Daily Reports / Daily Logs
Daily site logs are powerful records. They document weather, manpower, equipment usage, safety meetings, incidents, and more. These logs are often the only real-time source of truth when disputes arise.
🕒 Make it routine: Record every day, even if nothing unusual happens.
7. Photographs and Videos of the Site
Clear, date-stamped visual evidence is invaluable in showing before-and-after conditions, especially for damage claims. These photos should include site-wide shots and close-ups of critical areas.
📸 Best practice: Capture photos at key milestones, and after any incident or weather event.
8. Incident or Accident Reports
If an accident, injury, or property damage occurs, file an incident report immediately. Include details like time, witnesses, photos, and steps taken. These reports support your version of events during claim investigations.
🚑 Note: OSHA logs and medical reports may also be required.
9. Invoices and Proof of Costs
Any financial claim—whether for stolen materials, property loss, or repairs—must be backed by invoices, receipts, and payment records. Insurers use these to verify your costs and calculate reimbursements.
💵 Digital tip: Keep cloud backups of all vendor invoices, especially for high-ticket items.
10. Correspondence Records
Emails, texts, and letters can prove that notice of loss was given properly, or that corrective action was taken. Insurers often ask, “When were we notified?”—and this paper trail answers that question.
📧 Keep everything: Save all emails with insurers, subcontractors, and regulatory authorities related to the project.
Why These Documents Matter
Together, these 10 documents tell the complete story of your project—from planning to execution, and everything in between.
Even if 9 out of 10 are in order, a missing contract or absent change order could seriously damage your credibility with the insurer. Claims get denied because a single missing document leaves doubt in the insurer’s mind about what really happened.
🛡️ Don’t let that happen to you.
Conclusion: Be Organized and Save Everything
Construction is high-risk—and documentation is your best protection. Implementing a digital document management system or even a simple checklist can be the difference between a denied claim and a fast settlement.
✅ Save early. Save often. Save everything.
Need help setting up a documentation process for your crew? Consider platforms that integrate photo logging, permit tracking, and daily logs—so you’re always ready before the unexpected strikes.