Contrary to what some may believe, the designated construction project general aggregate limit endorsement (CG 25 03) does not apply to the policy’s products-completed operations aggregate. A broker reached out to me last week seeking my opinion on this to resolve an internal disagreement she was having with some of her colleagues. A designated construction […]
Construction
Understanding Owner’s Interest Liability Insurance
One of the insurance policies I find to be misunderstood by many, including industry professionals, is an owner’s interest (OI) general liability policy. Many incorrectly believe that an owner should rely on a general contractor or construction manager’s liability insurance for a construction project without the need for the owner’s own liability policy. Some will […]
A CPL Policy Does Not Obviate the Need for an Owner to Purchase Their Own Pollution Liability Policy
An owner/developer of a construction project should not rely on a contractor’s pollution liability (CPL) policy as the sole coverage for pollution claims arising from the project. A CPL policy provides third-party coverage for bodily injury and property damage claims as a result of pollution conditions arising from contracting operations performed by or on behalf […]
Accurately Estimating the Duration of a Construction Project
Try to estimate the length of a construction period as accurately as possible for insurance coverage purposes to avoid additional costs to extend a policy or having to procure a replacement policy. I have been coming across these scenarios often recently due to COVID, but have seen this in the past as well. Companies that […]
OCP & Waiver of Subrogation
A contractor procuring an OCP (owners and contractors protective liability policy) for a third-party must ensure that a waiver of subrogation is endorsed onto the policy for otherwise a primary rationale behind the policy would be nullified. Without a waiver, the carrier would look to subrogate against the contractor’s liability policy, which is precisely what […]
Workers’ Compensation in Wrap-Ups
Single policies for builder’s risk and general liability can be issued for all participants in a controlled insurance program (CIP aka Wrap-Up), but all states other than Michigan require individual workers’ compensation policies be issued for each participant in the program in order that the loss experience of each entity can be tracked and included […]