Construction project managers are beefing up contractual requirements to transfer risk liability to contractors. Key issues include responsibility for indemnification, liquidated damages, builder’s risk, and delays. The trend is largely attributed to claims activity in wind- and flood-prone areas as well as the growth in litigation surrounding construction defects. The plethora of endorsements and specialty coverages further complicates matters.
As contractors enter into contracts with construction project managers, or owners it would be in the best interest of that contractors that they review the contract. There is new language that is being placed in contracts that may be more of a challenge to your insurance coverage than you think. Many of the indemnification clauses are quite broad in what you are expected to indemnify, and very often you are by contract extending coverage on your policy to others that you may not realize.
Working with an experienced service team has never been more important. We can help you fulfill your contractual insurance requirements and assist you in finding the right price and carrier. Call today.
