Construction Insurance is absolutely necessary to protect your assets.
Whether you are doing heavy construction or home improvement, there is very substantial risk associated with any construction project. The personal involvement of the owner is essential.
Any construction trade must have carefully underwritten Construction Insurance. This is a very complicated issue that can only be properly handled by experts.
We know that as a construction professional you are under constant pressure to perform – we are here to help solve your risk management problems. Please reach out to Bob, Mike or Jessica who have the experience and expertise to access a network of providers that provide the broadest coverage reasonably available to satisfy your insurance requirements. We can assist in evaluating contractual insurance docs and work with your clients to help assure your project or your progress payments aren’t delayed by insurance issues.
Casualty Insurance Specifications
The material below may be used as a guide in formulating specifications the reader may either develop to obtain quotes for his casualty insurance program or to develop insurance specifications that are incorporated into a contract with another contractor. It is recommended that such specifications be reviewed by your construction attorney.
When soliciting insurance proposals it is essential that the competing brokers stipulate they are experts in the construction insurance arena in express written statements. If not, they are unlikely to be liable for their negligence in placing and administering your insurance program.
1. Procure and maintain insurance on all of Contractor’s construction operations and on their related development properties and entities as reflected in attachment A. Construction operations cover is required whether the operations are by Contractor or by anyone for whose acts Contractor may be liable. Insurance companies must be authorized to do business in the State of California and be A.M. Bests’ rated A-VIII or better. Such coverage shall include coverage as follows:
(a) Workers’ Compensation and Employer’s Liability Insurance – All Contractor and Related Operations. Workers’ Compensation insurance shall be provided as required by any applicable law or regulation. Employer’s Liability insurance shall be provided in amounts not less than:
$1,000,000 each accident for bodily injury by accident
$1,000,000 policy limit for bodily injury by disease
$1,000,000 each employee for bodily injury by disease
(b) Commercial General Liability Insurance. Primary Commercial General Liability insurance (Insurance Services Office, Form CG 00 01) covering all operations by or on behalf of Contractor and related entities providing insurance for bodily injury, personal injury, and property damage for the limits of liability indicated below including but not limited to coverage for:
(1) Premises and Operations
(2) Products and Completed Operations
(3) Contractual Liability
(4) Explosion, Collapse, and Underground Hazards (Including Subsidence and Any Other Earth Movement)
(5) Personal Injury Liability
(6) Liability of Independent Contractors
(7) Construction means, methods, techniques, sequences and procedures including safety and field supervision
(8) Coverage for water trucks – GL carrier must acknowledge coverage provided
Items 1-7 above shall not be subject to any of the following limiting or exclusionary endorsements:
- subsidence or earth movement
- prior acts or prior work
- action over – precluding indemnity for passive acts of Contractor contributing to injury of a Contractor’s employee
- contractual limitation – eliminating cover for assumed liability
- supervisory or inspection service limitation
- insured vs. insured cross suits
- clauses terminating coverage after a designated period of time
- residential or habitational limitation if the Work includes residential or habitational work
- classification limitation limiting coverage for work to be performed
- defense inside limits provision
The limits of liability shall be:
$1,000,000 Each Occurrence (Combined Single Limit for Bodily Injury and Property Damage)
$1,000,000 for Personal Injury Liability
$2,000,000 Aggregate for Products-Completed Operations
$2,000,000 General Aggregate
The general aggregate limit shall apply separately to the each Contractor’s projects.
Liability coverage for the property development exposures may be arranged using a separate primary general liability policy so long as the above underwriting requirements are satisfied.
(c) Automobile Liability Insurance. Contractor and related entities require Automobile insurance underwritten by ISO Commercial Auto Forms, including coverage for all owned, hired, and non-owned automobiles. The limits of liability shall be not less than $1,000,000 combined single limit each accident for bodily injury and property damage. The schedule of vehicles, ownership, desired deductibles and driver’s list for all Contractor and related entities is shown in Attachment B.
(d) Excess Liability Insurance. A $10,000,000 Excess Liability Insurance policy shall be provided over the General Liability and Automobile Liability coverage. Such Excess coverage shall, at a minimum, include the items set forth in Paragraph (b) 1-7 above, and the insurance for such items shall not be subject to any of the limiting or exclusionary policy provisions or endorsements specified in Paragraph (b).
(e) If the Work is to be performed within fifty (50) feet of any railroad, Contractor’s Commercial General Liability policy shall be endorsed to delete the exclusion for work performed within fifty (50) feet of a railroad. Contractor will advise when required.
2. Additional Insurance Requirement. Owner and others, as required, shall be named as additional insureds under the Commercial General Liability Policy, and such insurance afforded the additional insureds shall apply as primary insurance. Any other insurance maintained by Owner shall be excess insurance and shall not be called upon to contribute to Contractor’s primary or excess insurance carrier’s duty to defend or indemnify. The excess insurance required above shall also afford additional insured protection to Owner and Contractor.
The primary additional insured insurance coverage required by this Section shall be provided by Insurance Services Office, Additional Insured Endorsement Forms CG 20 10 and CG 20 37, or similar form(s) with the express written permission of Contractor with coverage not less broad.
3. Supplementary Liability Provisions.
(a) No Claims Made or Modified Occurrence General Liability form without the express written consent of Contractor.
(b) Quote various deductible provisions and/or self-insured retentions of up to $25,000 per occurrence – no per claim deductible is allowed.
(d) Except for items 1-7 in Section 1 above standard ISO Form CG 00 01 exclusions will be allowed. Allowance of any additional exclusions or coverage-limiting endorsements is at the discretion of the Contractor. All exclusionary endorsements MUST be disclosed in the proposal.
4. Contractor’s Duties. Any acceptance of insurance policies by Contractor shall in no way limit or relieve Broker of its duties and responsibilities to provide the coverage as required by this specification.