The insurance is the valid means which transfers engineering risk, but applied very limited in our country. The present condition of the construction engineering insurance and the factors restraining its wide application are investigated. The investigation results indicated that the main factors restricting the development of construction engineering are various. The knowledge to insurance is not enough, or the fluke mind is existing. The contractor is inactive to insure. The owner regards the insurance as compulsive request of the government and the bank and has to fulfill it.