Construction
Is Your Agent CRIS Certified?
Very few insurance brokers have taken the time to really learn about construction related risks. The brokers who have, demonstrate their knowledge by obtaining the Construction Risk & Insurance Specialist (CRIS) designation. Learn if your broker has this critical designation.
Construction firms face many of the same risks as other firms, but due to shifts within the insurance industry and ever increasing construction defect litigation, contractors face unique challenges that require specialized expertise.
The statute of repose (or limitation) for construction defects varies from state-to-state but can be as long as 20 years. Learn more about the Statute of repose for your state.
Each state has different requirements as it relates to what is allowed regarding the different indemnification types as well as the different additional insured forms.” Review the “Anti-Indemnity” statutes.
General Liability
General Liability insurance is the primary insurance coverage required in most states to legally conduct business. However, this seemingly simple and “standard” coverage can be quite complex.
Insurance companies wishing to limit their losses in construction defect cases have in some cases included significant coverage exclusions that can effectively make the coverage worthless depending on the type of work a contractor performs.
Even without a broad coverage exclusion, other common provisions such as the varying forms of “Additional Insured” endorsements can severely limit the ability of an upper tier contractor to be protected by the insurance of their subcontractors.
Workers’ Compensation
Although the rules vary, in virtually every state employers are obligated to provide Workers’ Compensation coverage for their employees. This coverage protects both the employer and the employee when an on the job injury occurs. However, some small subcontractors may not carry this coverage which presents a risk for firms who hire them. Ensuring that your firm is adequately protected goes beyond just buying a policy.
