Stay informed about the trends in the P&C and benefits industries.
While the inherent risk of bodily injury and property damage exists each time a contractor begins a project, the economic loss exposures are not always as apparent. The increase in the number of construction projects in the United States, coupled with the expanding roles and responsibilities of contractors, has created a perfect storm of exposure to economic losses for contractors within the construction sector. This article examines the Professional Liability policies available for contractors and how they would respond in common claims scenarios.
The use of drone technology in the construction industry can revolutionize the lifecycle of a project and provide a contractor with a competitive edge. With the significant increase in the usage of drones, it's important that contractors employ sound risk management strategies and analysis in order to protect their business. This article explores the benefits of utilizing drone technology, associated risks, and legislative issues, as well as insurance coverages to consider.
Construction contract negotiations, which determine the kind and amount of insurance required for a construction project, can be time-consuming, complicated and frustrating. Project owners require contractors on a project to name the project owner as an additional insured on the contractor’s casualty insurance program. It's important that both project owners and contractors understand the coverage provided by these additional insured endorsements. This article discusses four common ISO additional insured endorsements related to commercial general liability policies purchased by contractors, including their limitations, conditions and exclusions.
Ordinance or Law insurance coverage provides limited protection for costs associated with repairing, rebuilding, or constructing a structure when physical damage to the structure by a covered cause of loss triggers an ordinance or law. Compliance with ordinances and laws after a loss can add 50% or more to the cost of a claim. This article will help you educate your insureds on exclusions and limitations and help them take a proactive approach to their insurance program.
In early 2017, the American Institute of Architects (“AIA”) introduced updates to its form construction contract documents, including a new exhibit that addresses insurance requirements between the owner and contractor. Since these forms are considered construction industry standards, it is important for those handling insurance and risk matters for the construction industry to be aware of these changes to insurance requirements.
The Commercial General Liability policy (CGL) is an essential factor in the equation that consists of building planning, financing, construction, operation, and protection from risk. Standard ISO form CGL policies contain an insuring clause subject to long-standing exclusions, which have been the subject of interpretation and case law over the years. This article focuses on the operation of the form’s exclusions j, k, and l.
Owners and developers involved in construction projects must deal with the inherent risks involved with such projects. Their options are typically limited to avoiding, assuming, controlling/mitigating, or transferring the risk. This article addresses the most common risk transfer options.
During and after a construction project, commercial general liability and project-specific policies may not fully protect building owners against any and all risks faced. This article addresses two unique areas which should be carefully considered to ensure proper coverage.
Responding in large part to the increase in construction defect litigation, the state legislatures have enacted provisions to provide certainty and to limit the time in which a party may bring suit for a defect claim. In this article, we discuss the importance of understanding the applicable statutes of limitation and statute of repose for a given jurisdiction, as well as the interplay of those statutes with other provisions.
An evolving and dynamic area of law, “right to repair” statutes require homeowners to notify builders of claimed defects and to provide them with an opportunity to repair the defects before taking legal action.
During a construction project, much of the risk is with the contractor. However, the owner of the project also has the potential for liability. Give your clients more adequate protection during construction with an Owner’s Interest policy that includes extended completed operations insurance.
The resurging construction industry means that builder's risk submission activity is on the rise. As such, it's important to understand this line of business. Here's an overview of some things to consider on a builder's risk policy.
When it comes to writing insurance requirements for contractors, there is a delicate balance to strike: protect insured interests while being reasonable and clear to contractors. This article discusses the importance of diligence in overseeing and enforcing such contractor insurance requirements.
Litigation over whether a Commercial General Liability (CGL) insurance policy provides coverage for faulty workmanship claims is rapidly evolving. This article discusses situations where faulty work is considered an occurrence, when "property damage" becomes a factor, and how the "your work" exclusion and the subcontractor exception applies.
An endorsement like a CG 20 37 or similar can help provide options for completed operations coverage for additional insureds that might otherwise be overlooked or unavailable.
Additional insured endorsements are not a universal remedy and coverage is contingent on making sure a written agreement or contract is in place, with the named insured specifically adding the people or organizations included.