Construction Today - November/December 2012 - (Page 20)

Industrial By Christine Gudaitis ENSURING THE RIGHT COVERAGE I 20 nsurance and risk management are significant and necessary aspects of the construction business, with certain coverage and risk allocation passed downstream. The project owner will usually require its general contractor (GC) to purchase and maintain a specific amount and type of commercial general liability (CGL) coverage, naming the owner as an additional insured. The GC, in turn, will require its subcontractors to carry specific CGL coverage, naming it (and, likely, the owner) as “additional insureds” on the subcontractor policies. In an ideal world, the GC would get the benefit of liability coverage under its subcontractors’ policies without paying premiums or deductibles. To ensure additional insured status and appropriate coverage, however, certain steps should be taken by the GC. At the outset, the insurance requirements set forth in the contract with the subcontractor should be carefully considered and worded. The contract between the owner and the GC may dictate terms that should be included, but the GC’s own CGL policy may contain requirements, as well. For example, the GC’s policy may require it to, among other things, maintain certificates of insurance for all subcontractors working on the GC’s behalf, maintain specific dollar amounts of that insurance, and require that all subcontractors’ insurance be primary and not contribute with insurance provided by the GC’s policy. In other words, the GC’s own policy may require specific terms to be included in the contract with the subcontractor, and a failure to comply could impact coverage should it be needed under the GC’s own policy. A GC should not give its CGL carrier a reason to deny coverage for something as simple as a failure to maintain the subcontractor certificates of CONSTRUCTION-TODAY.COM NOVEMBER/DECEMBER 2012 http://www.CONSTRUCTION-TODAY.COM

Table of Contents for the Digital Edition of Construction Today - November/December 2012

Construction Today - November/December 2012
Construction Law
Best Practices
Hurricane Sandy
Marketing Strategies
Holcim (US) Inc.
Tampa Tank Inc./Florida Structural Steel
Rockwell Group
IVM Construction Inc.
Millennium Partners – Millennium Place
Paradigm Cos.
W.G. Yates Construction
Regalia Beach Developers LLC – Regalia
Marlyn Development and S.L. Nusbaum Realty – Heritage Forest Apartments
Chas Roberts Air Conditioning
Bellini Williams Island
Beal|Derkenne Construction – The Hub
Cedar Siding Inc.
Nibbi Bros. – Hunters View Phase 1
EllisDon Corp. – Surrey Memorial Hospital Critical Care
Turner Construction – Martin Army Community Hospital
U.S. General Services Administration/VCC – FBI Field Building
The Hayner Hoyt Corp.
Paric Corp.
Rotondo Weirich Enterprises Inc.
Advocate Christ Medical Center and Pepper Construction – Outpatient Pavilion expansion
Shawnee Mission Medical Center – United Excel – Birth Center
National Lutheran Communities & Services – The Village at Rockville/ARCH Consultants Ltd.
Harold O'Shea Builders – Springfield Clinic First North
Dewberry/Okland Construction – Western Regional Medical Center Addition
Kohler Ronan LLC
Graber Post Buildings Inc.
Tooz Construction Inc.
Bombardier Learjet – Facility Expansion
Rock Gaming LLC – Horseshoe Casino Cincinnati
Demar Plumbing Corp.
Metrolina Greenhouse
Rommel Cos.
W.G. Tomko Incorporated Contractors
Continental Contractors
Reliable Contracting Co. Inc.
Graham Construction and Engineering – Wastewater Treatment Plant Upgrade
J.R. Filanc Construction Co. Inc.
Pulice Construction Inc. – I-10 Prince Road
Ames-Granite – US 36
Tomar Construction
E.E. Cruz/Tully – Bronx-Whitestone Bridge Queens approach
TL Wallace Construction Inc.
CARCON Industries and STL Engineering
Last Look

Construction Today - November/December 2012