Performance Bonds and CGL Insurance in Construction Projects: Navigating Interplay Between Insurance and Surety

Minimizing Risks and Maximizing Recovery for Defective Workmanship and Property Damage

Recording of a 90-minute CLE webinar with Q&A

Conducted on Wednesday, September 21, 2016

Recorded event now available

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Program Materials

This CLE webinar will review the key differences between insurance and suretyship as well as the interplay between Commercial General Liability (CGL) policies and performance bonds for losses involving defective work and/or property damage. Our panel of experts will discuss best practices to minimize risk on construction projects through the use of both CGL policies and performance bonds.


CGL insurance and performance bonds are two common financial risk mitigation tools for construction projects. While there are some similarities and overlap, liability insurance and surety bonds are very different products and respond to losses in different ways.

Both insurance and surety bonds can be implicated in defective workmanship claims that involve a contractor's default on the construction contract.

Practitioners representing project owners, contractors, insurers or sureties must have a thorough understanding of the differences between performance bonds and CGL policies, the protections provided, when each comes into play, and where they overlap.

Listen as our authoritative panel of construction practitioners explains the distinctions between insurance and suretyship, identifies potential overlap and the interplay between CGL policies and performance bonds for defective workmanship and property damages, and offers best practices for minimizing risk and maximizing coverage.



  1. Surety bonds
  2. CGL coverage
  3. Faulty workmanship
  4. Property damage
  5. Owner vs. contractor vs. surety perspective


The panel will address these and other key issues:

  • What are the distinctions between CGL policies and surety bonds?
  • Where might performance bonds and CGL policies overlap in the context of a contractor’s default or other nonperformance?
  • How has the recent expansion of CGL coverage for defective workmanship led to confusion with coverage under a performance bond?


Sanchez, Marc
Marc A. Sanchez

Frantz Ward

Mr. Sanchez focuses his practice on construction law. He has tried cases to juries and the bench throughout the...  |  Read More

Kingsley, Patrick
Patrick R. Kingsley

Chair, Construction
Stradley Ronon Stevens & Young

As Chair of the firm’s Construction Group, Mr. Kingsley handles a wide variety of complex commercial disputes,...  |  Read More

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