Construction Insurance

General Liability insurance protects a project or an individual as well as any adjacent properties from damage or loss as a result of an accident during the construction process. The GL policy provides coverage for liability arising from bodily injury, personal injury or damage to property of third parties.

The GL policy is designed to insure the following:

• Premises/operations—Premises owned but also project locations
• Independent contractors—Liability exposures that might arise from subcontractors or suppliers
• Contractual liability—Obligations arising out of indemnity agreements found in contracts
• Products and completed operations—Liability claims arising out of the project after it has been completed and put to its intended use

Defense coverage in addition to paying awards or settlements for covered liability claims, the CGL policy covers the cost to investigate and defend such claims or suits. Supplementary payments are also included in this policy, which are designed to cover cost of bail bonds, court cost and pre-judgment interest cost.

• Per project aggregates will provide the policy general aggregate on a per location or per project basis. This is usually required by many contracts with owners or general contractors. It will also have a positive impact on the pricing of the Umbrella/Excess Policy.
• Pollution exclusions are typical in CGL policies. Certain specialty markets will provide broadened coverage for the exposures of contractors.
• Residential restrictions are becoming more common. Each insurance company defines "residential" differently. Some define residential as hotels, dormitories, prisons, etc.
• Employee Benefit Liability coverage is important to include in the program.
• Blanket waivers of subrogation will normally be required by owner contracts.
• A blanket additional insured endorsement will normally be required by owner contracts.
• Residual wrap-up coverage can be important for contractors who perform work under either Owner Controlled or Contractor Controlled Insurance Programs.

Excess policies are typically written in one of four ways:

• Stand-alone excess. This is a self-contained policy that consists of all of its own terms and conditions. It does not incorporate any of the terms and conditions of the underlying policies.
• Straight excess. This policy provide excess limits. It is commonly used as a buffer layer to qualify an insured for an umbrella or excess when the limits of underlying policies are inadequate.
• Follow form excess. This policy is intended to provide exactly the same coverage terms and conditions as the underlying policies (other than for limits).
• Conditional follow form excess. This is the most common type of follow form excess liability policy. It is the opposite of the follow form excess because, in the event of a conflict with a primary policy, the terms and conditions of the conditional follow form policy take precedence.

Commercial auto insurance is a vehicle insurance policy that provides financial protection for a business' vehicles and its drivers. Employees involved in on-the-job collisions will receive coverage for medical injuries as well, regardless of fault.

• Commercial vehicles are any vehicles and trailers that a business or company uses to transport job-related materials, goods or equipment.
• The most common type of commercial auto insurance is liability coverage, which most states require. It covers a driver liable for damaging cars or injuring others.
• Factors that can increase premiums include the type of vehicle driven, safety devices such as air bags and automatic seat belts, anti-theft devices and parking locations.

Workers' Compensation is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee's right to sue his or her employer for the tort of negligence.

While plans differ among jurisdictions, provision can be made for weekly payments in place of wages, compensation for economic loss, reimbursement or payment of medical and like expenses, and benefits payable to the dependents of workers killed during employment.

Disability insurance is designed to replace a portion of your income should you become disabled and are no longer able to work. Employers typically offer group plans that will replace up to 60 percent of your salary in the event of a disability.

According to the American Council of Life Insurers, one third of all Americans between the ages of 35 of 65 will become disabled for more than 90 days. In addition, one in seven workers will be disabled for more than five years.

A surety bond is a contract among at least three parties: the principal, the obligee and the surety. Through this agreement, the surety agrees to make the obligee whole if the principal defaults in its performance of its promise to the obligee.

• Contract Bonds - Contract surety refers to bonds required of a contractor for construction. Common contract bonds include: bid, performance, payment, labor, material, subdivision, maintenance, and supply.
• Court Bonds - Court bonds fall into two categories: judicial and fiduciary. Typically required in litigation proceedings to protect either the plaintiff or defendant.
• License and Permit Bonds - Required by municipalities, states or other government entities to comply with the license or permit for which they have applied.
• Miscellaneous Bonds - Any commercial bonds that are not clearly classified as license and permit or court fall under the miscellaneous category.

If you're a contractor who's constantly moving materials and equipment from one place to another, whether it's across town or across the country, you should consider the addition of inland marine insurance to your contractor's insurance portfolio.

Simply put, "inland marine" insurance covers goods in transit over land, or over any place that does not involve marine or oceanic transport. Today, inland marine insurance coverage extends to any domestic goods in transit, or any goods exposed to possible loss or theft while being shipped, warehoused, or held by U.S. Customs officials or the U.S. Post Office.

Builders Risk is a special type of property insurance which indemnifies against damage to buildings while they are under construction. Builder's risk insurance is "coverage that protects a person's or organizations insurable interest in materials, fixtures and/or equipment being used in the construction or renovation of a building or structure should those items sustain physical loss or damage from a covered cause."

Buildings are subject to many different risks while under construction. They may catch fire, be damaged by high winds, or fall victim to other force majeure. Builder's risk insurance indemnifies against some of these losses.

Builder's risk covers perils such as fire, wind, theft and vandalism and many more. It typically does not cover perils such as earthquake, flood or wind in beach zones unless the policy has been specifically endorsed to do so.