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Construction Liability Overview

Construction Liability Overview. Insuring Construction Risks. What: Insurance Requirements Who: Owners, General Contractors, Subcontractors When: Prior to Commencement of Work. What: Insurance Requirements. Contract Riders (See Exhibit I) Hold Harmless Agreements.

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Construction Liability Overview

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  1. Construction Liability Overview

  2. Insuring Construction Risks • What: Insurance Requirements • Who: Owners, General Contractors, Subcontractors • When: Prior to Commencement of Work

  3. What: Insurance Requirements • Contract Riders (See Exhibit I) • Hold Harmless Agreements

  4. Who: Owners, General Contractors, Subcontractors • Owners • If Owner is Hiring Subcontractors Directly Additional Insurance May Be Required • General Contractors • Subcontractors

  5. When: Prior to Commencement of Work • During Contract Negotiations • Certificate of Insurance (See Exhibit II)

  6. Common Exposures • Owners • Contractors • Others – Project Manager, Architects, Engineers

  7. Owners’ Exposures • Non-Construction, Premises Liability • Uninsured Contractors

  8. Contractors’ Exposures • Bodily Injury • General Public • Workers – Third Party • Property Damage • Existing Structure • Surround Buildings

  9. Professional Liability Exposures • Project / Construction Managers • Architects • Engineers

  10. Commonly Required Insurance • Liability – General and Excess • Automobile Liability • Workers Compensation

  11. Liability – General & Excess • General Liability • Excess / Umbrella Liability • Extends Over Scheduled Underlying Insurance Policies • Choosing Limits • Self Insured Retention / Deductible

  12. Automobile Liability • Owned Autos • Licensed Motor Vehicles • Mobile Equipment Licensed for Road Use • Hired Autos • Leased & Rented Motor Vehicles • Non-Owned Autos • Employees Private Passenger Autos

  13. Workers’ Compensation • Bodily Injury to Employees • State Statutory Limits • Employers Liability • Coverage for Damages the Insured is Legally Obligated to Pay for Employee Injuries Due to Insured’s Negligence. • Bodily Injury to Uninsured Subcontractors • Implied Employer/Employee Relationships

  14. Additional Coverages • Per Project / Per Location Aggregate, Pollution, XCU • Separate Policies – OCP, Railroad Protective • Bonds

  15. Additional Policy Coverages • Per Project Aggregate • Per Location Aggregate • Pollution Liability • XCU (Explosion, Collapse, Underground)

  16. Separate Policies • OCP (Owners & Contractors Protective Liability Policy) • Railroad Protective Liability

  17. Bonds • Wage & Welfare • Guarantees Payment of Wages and Contribution to Welfare Funds • License & Permit • Required by Municipalities Before Granting of a License or Permit To Do Business. • Performance & Payment • Guarantees Satisfactory Completion of the Project and Payments to All Subcontractors & Suppliers.

  18. Certificates of Insurance • Carrier Ratings • Additional Insured • Ongoing and Completed Operations • Per Project / Per Location Aggregate • Waivers of Subrogation

  19. Carrier Ratings • A.M. Best – Most Commonly Used (See Exhibit III) • Moody's • Standard & Poor

  20. Additional Insured • Primary & Non-Contributory • Additional Insured Forms Vary by Carrier and May Not Afford the Required Coverage

  21. Ongoing & Completed Operations • Compliance With Guaranty Provision • Extended Completed Operations

  22. Per Project / Per Location Aggregate • Causes the General Aggregate Limit to Apply Separately To Each Of The Insured's Projects or Locations. • Reduces Potential for Exhausting Limit of Liability.

  23. Waivers of Subrogation • The Relinquishment By an Insurer of the Right to Collect From Another Party for Damages Paid on Behalf of the Insured.

  24. What To Do After Project Completion • Owner’s Insurance for Intended Use • Vacant or Partially Occupied Properties

  25. Owner’s Insurance • Conclusion of Construction Liability Insurance • Owner Occupied • Lessor’s Risk Only • Tenant Insurance

  26. Vacant or Partially Occupied Properties • Vacant Buildings Represent an Increased Liability Exposure That Ordinarily Requires Special Underwriting and Additional Premium.

  27. Contact Us • Marie HeinrichsSenior Vice President, Private Risk312-252-2153 • George ManganSenior Vice President, Commercial312-252-2154 • Lori PastoreAssistant Vice President, Real Estate312-252-2153 • Roger KlugeSenior Vice President, Real Estate212-297-1461

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