CONTRACTORS GENERAL LIABILITY: 'General Liability' (CGL), is the one form of coverage that all Contractor types should always have in-force. An insurance policy issued to business organizations to help protect them from third parties, for covered claims, with a duty to defend you as well as a limit of liability payable to respond to covered events for 'bodily injury' and 'property damage' arising out of your 'premises and job site operations', 'products & completed operations' and 'advertising and personal injury' liability. In specialty trades that Contractors perform including Contracting, Construction, Oil and Gas/Oilfield/Energy, Remediation and Marine Contracting are unique industries for insurance because contractors are deemed to be responsible for their completed work, job location premises (before and during work being performed) and, in many cases, are also required to be responsible for their work for many years into the future after the project/work is completed...this requirement is typically compelled by 'clients/land owners' or a 'state statute' set forth in each state. Each client's requirements and all states are different, in regards to your responsibilities for Construction Defect, Tort Liability and the Statute of Limitations.
In States like Texas and California, your clients will compel you to produce a 'Certificate of Liability / Certificate of Insurance', to name their company as 'Additional Insured' on your policy prior to award of a contract or entry to a job-site. The request is commonly made for 'The Core Coverage's' which consist of General Liability, Commercial Auto and Workers Comp. Some clients request certain and specific 'Special Wording' to accompany their certificates; ask for their insurance requirements prior to bidding any contract and let's read your contract together, to be sure the costs and availability of the wording is something you are comfortable with plus so you include those costs in your bid as well as so that you understand what additional responsibilities or liabilities you may be assuming/accepting.
'Excess Liability' insurance is the new standard with a lot of the contracts we're seeing and the project/property owners, as always, are moving the liability down the pipe/pike by risk transfer via contractual liability, to our contractors. We can help review your clients contracts with you.
Any phase of construction should have a 'Course of Construction/Builders Risk' in force to respond to certain pre-selected perils such as fire, theft, vandalism, collapse, lightening, wind storm, earthquake and flood. Hard costs to rebuild the project and soft costs such as contractor profit can be scheduled (Subcontractors should call for this coverage; if not self-funded, the bank should require it too.) Please consult with us for the reasons to obtain this invaluable coverage.
'Design-Build' builders face a new set of design-based responsibilities in addition to their job-site and contractor operations exposure, an increased liability exists as opposed to the traditional 'Design-Bid-Build' process, due to the fact that you engineer the designs, plans, means & methods of delivery and warrant the design plus the construction. To respond to this increased exposure, contractors should procure 'Professional Liability/Errors & Omissions', for response to covered claims of negligence in design or engineering.
How is your 'Subcontractor Agreement' and the indemnification part (Hold harmless), is it up to date? We have a sample subcontractor agreement that can be modified by you or as we recommend, have your contract specialist tailor it specifically for your company; let us know if we can email a copy to you.
'Subcontractors' should use like limits to the general and if excess is required by the project owner then the subs will place the same protective limits plus have them name you 'Additionally Insured' on their general liability with a waiver of subrogation, additional insured for commercial auto with hired & non-owned autos and get 'Certificates of Workers Comp' with a waiver of subrogation. Owners Contractors Protective (OCP), is commonplace for an owner to require the general to procure in the event of third party action over claims from the generals employees or subs employees holding/suing owners claiming negligence for injury due to job site conditions, etcetera; it offers response to defense costs for the owner, sometimes you can find this already in your general liability policy, additional insured endorsements.
A centralized insurance program under which one party procures insurance on behalf of all (or most) parties performing work on a project or a site. Typically, the coverage's provided under a CIP include builders risk, commercial general liability, workers compensation, and umbrella liability. CIPs are most commonly used on single construction projects but other uses include contract maintenance on a large plant or facility or on an ongoing basis for multiple construction projects. CIPs offer a number of benefits including greater control of the coverage, potentially lower costs and reduced litigation. Can be owner controlled (OCIP) or contractor controlled (CCIP).
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