» CONSTRUCTION INSURANCE

Construction Insurance

Specializing in construction trade, such as building construction, heavy construction and specialty trade construction.

General Liability

General Liability insurance protects a project or an individual as well as any adjacent properties from damage or loss as a result of an accident during the construction process. The GL policy provides coverage for liability arising from bodily injury, personal injury or damage to property of third parties.

The GL policy is designed to insure the following:

Premises/operations—Premises owned but also project locations
Independent contractors—Liability exposures that might arise from subcontractors or suppliers
Contractual liability—Obligations arising out of indemnity agreements found in contracts
Products and completed operations— Liability claims arising out of the project after it has been completed and put to its intended use

Defense coverage in addition to paying awards or settlements for covered liability claims, the CGL policy covers the cost to investigate and defend such claims or suits. Supplementary payments are also included in this policy, which are designed to cover cost of bail bonds, court cost and pre-judgment interest cost.

Per project aggregates will provide the policy general aggregate on a per location or per project basis. This is usually required by many contracts with owners or general contractors. It will also have a positive impact on the pricing of the Umbrella/Excess Policy.
Pollution exclusions are typical in CGL policies. Certain specialty markets will provide broadened coverage for the exposures of contractors.
Residential restrictions are becoming more common. Each insurance company defines “residential” differently. Some define residential as hotels, dormitories, prisons, etc. They do not restrict the definition to a single family home or condo unit. If a contractor’s work involves apartments or other work considered “residential,” this can be a significant restriction of coverage.
Employee Benefit Liability coverage is important to include in the program.
Blanket waivers of subrogation will normally be required by owner contracts.
A blanket additional insured endorsement will normally be required by owner contracts.
Residual wrap-up coverage can be important for contractors who perform work under either Owner Controlled or Contractor Controlled Insurance Programs. This will provide coverage to the contractor after the wrap-up coverage’s completed operations term has expired.

American Risk Advisors is always here to help – (516) 388-5600.

Umbrella/Excess Liability

Excess policies are typically written in one of four ways:

Stand-alone excess. This is a self-contained policy that consists of all of its own terms and conditions. It does not incorporate any of the terms and conditions of the underlying policies.
Straight excess. This policy provide excess limits. It is commonly used as a buffer layer to qualify an insured for an umbrella or excess when the limits of underlying policies are inadequate. For example, an excess insurer may require a primary limit of $1 million in a case where only $500,000 is available. In this case, it is necessary to obtain a buffer layer of $500,000. Buffer layers are common during hard markets, and for entities with consistently poor loss history that desire liability coverages above the usual primary policies.
Follow form excess. This policy is intended to provide exactly the same coverage terms and conditions as the underlying policies (other than for limits). Its significance is that in the event of a conflict with the terms or conditions of the primary policy, it is the primary policy’s terms or conditions in question that control.
Conditional follow form excess. This is the most common type of follow form excess liability policy. It is the opposite of the follow form excess because, in the event of a conflict with a primary policy, the terms and conditions of the conditional follow form policy take precedence. For example, if the conditional follow form contains an absolute pollution exclusion and the primary CGL policy contains the usual unendorsed pollution exclusion built into the policy, the conditional follow form excess policy will not provide pollution coverage.

American Risk Advisors is always here to help – (516) 388-5600.

Commercial Automobile

Commercial auto insurance is a vehicle insurance policy that provides financial protection for a business’ vehicles and its drivers. Employees involved in on-the-job collisions will receive coverage for medical injuries as well, regardless of fault.

Commercial vehicles are any vehicles and trailers that a business or company uses to transport job-related materials, goods or equipment. Work vehicles have insurance premiums paid for by the company, unlike policies for personal vehicles that the vehicle owner pays for.
The most common type of commercial auto insurance is liability coverage, which most states require. It covers a driver liable for damaging cars or injuring others. Other types of commercial auto insurance include collision, uninsured, gap and personal protection.
Factors that can increase premiums include the type of vehicle driven, safety devices such as air bags and automatic seat belts, anti-theft devices and parking locations. A company’s previous insurance claims can also affect the cost of insurance.

American Risk Advisors is always here to help – (516) 388-5600.

Workers Compensation

Workers’ Compensation is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee’s right to sue his or her employer for the tort of negligence. The tradeoff between assured, limited coverage and lack of recourse outside the worker compensation system is known as “the compensation bargain”.

While plans differ among jurisdictions, provision can be made for weekly payments in place of wages (functioning in this case as a form of disability insurance), compensation for economic loss (past and future), reimbursement or payment of medical and like expenses (functioning in this case as a form of health insurance), and benefits payable to the dependents of workers killed during employment (functioning in this case as a form of life insurance).

General damage for pain and suffering, and punitive damages for employer negligence, are generally not available in workers’ compensation plans, and negligence is generally not an issue in the case. These laws were first enacted in Europe and Oceania, with the United States following shortly thereafter.

American Risk Advisors is always here to help – (516) 388-5600.

Disability

Disability insurance is designed to replace a portion of your income should you become disabled and are no longer able to work. Employers typically offer group plans that will replace up to 60 percent of your salary in the event of a disability. There are also common supplemental plans and individual disability insurance policies that can cover as much as 70 to 80 percent of your income.

Disability insurance benefits for contractors are slated to last for a set number of years, or until the insured person reaches retirement age. Benefits generally stop around retirement age, based on the notion that once you retire, you will no longer be dependent on your work-related income.

If the premium for contractor disability insurance is paid out-of-pocket by an individual, then benefits are tax-free. This would mean that the employer does not cover the premium costs.

Have you ever thought about what would happen to you if you were suddenly physically unable to work? Although nobody likes to think about it, the possibility of disability is one that can strike when least expected. According to the American Council of Life Insurers, the harsh reality is that one third of all Americans between the ages of 35 of 65 will become disabled for more than 90 days. In addition, one in seven workers will be disabled for more than five years.

American Risk Advisors is always here to help – (516) 388-5600.

Surety bonds

A surety bond is a contract among at least three parties: the principal, the obligee and the surety. Through this agreement, the surety agrees to make the obligee whole if the principal defaults in its performance of its promise to the obligee.

Contract Bonds Contract surety refers to bonds required of a contractor for construction. A contract bond generally provides a guarantee that a construction contractor will successfully complete a specified project according to the contract terms. Common contract bonds include: bid, performance, payment, labor, material, subdivision, maintenance, and supply.
Court Bonds Court bonds fall into two categories: judicial and fiduciary. Typically, judicial bonds are required in litigation proceedings and are ordered by the court to protect either the plaintiff or defendant in a particular case. Fiduciary bonds require the appointed principal’s faithful performance and completion of duties such as managing, transferring and distributing assets and property in accordance with court orders for any person who is unable to manage his or her own affairs.
License and Permit Bonds License and permit bonds are required by municipalities, states or other government entities and require individuals or businesses to comply with the license or permit for which they have applied. These bonds guarantee that the principal will comply with the terms of the specific bond and hold the obligee against loss in the event of a violation of regulation and ordinances under which the license or permit is required.
Miscellaneous Bonds Any commercial bonds that are not clearly classified as license and permit or court fall under the miscellaneous category. Miscellaneous bonds can be required by municipalities, states, government entities, individuals, or various other entities. Bond forms and requirements are non-standard with diverse laws and ordinances.

American Risk Advisors is always here to help – (516) 388-5600.

Inland Marine

If you’re a contractor who’s constantly moving materials and equipment from one place to another, whether it’s across town or across the country, you should consider the addition of inland marine insurance to your contractor’s insurance portfolio.

Simply put, “inland marine” insurance covers goods in transit over land, or over any place that does not involve marine or oceanic transport. Today, inland marine insurance coverage extends to any domestic goods in transit, or any goods exposed to possible loss or theft while being shipped, warehoused, or held by U.S. Customs officials or the U.S. Post Office. Coverage may also include goods or equipment other than building materials, but which are frequently transported from one location to another.

Nearly any product, equipment, or material may fall under the umbrella of inland marine insurance. Some examples of coverage typically classified as inland marine insurance are scheduled properties, processing risk coverage, rigger’s liability, builder’s risk, contractor’s equipment, goods and properties classified as accounts receivable, computer coverage, and communications towers an equipment. Each contractor’s specific needs for inland marine insurance coverage can be addressed by an insurance professional, so that the contractor emerges with a policy that has been tailored to their specific needs

American Risk Advisors is always here to help – (516) 388-5600.

Builders Risk

Builders Risk is a special type of property insurance which indemnifies against damage to buildings while they are under construction. Builder’s risk insurance is “coverage that protects a person’s or organizations insurable interest in materials, fixtures and/or equipment being used in the construction or renovation of a building or structure should those items sustain physical loss or damage from a covered cause.”

Buildings are subject to many different risks while under construction. They may catch fire, be damaged by high winds, or fall victim to other force majeure. A principle of common law is that any new construction or other improvement to land becomes property of the owner of the land – the title holder – once there has been an “improvement” to the owner’s site. Builder’s risk insurance indemnifies against some of these losses.

Builder’s risk covers perils such as fire, wind, theft and vandalism and many more. It typically does not cover perils such as earthquake, flood or wind in beach zones unless the policy has been specifically endorsed to do so. However, earthquake riders can be very economical, depending on where your project is located and should be considered. These policies also do not cover accidents and injuries at the workplace. It is intended to terminate when the work has been completed and the property is ready for use or occupancy. If you are going to properly setup your policy, coverage should be effective prior to when the materials are delivered to the job site. Coverage ends upon the earlier of closing of the sale, occupancy or the policy expiration date. After builder risk coverage expires, due to sale or occupancy, the new owner should take out permanent property insurance on the building such as a home owner’s policy or a commercial property policy.

American Risk Advisors is always here to help – (516) 388-5600.

Pollution Liability

The Contractors Pollution Liability (CPL) Policy offers solutions specifically developed for contractors, which prevent gaps in coverage due to pollution-related exclusions on standard commercial general liability programs. These policies are available for contractors on a practice, project or excess basis.

Coverage:

Potential environmental losses for work performed by or on behalf of Named Insured
Sudden and accidental pollution events
Mold coverage available on claims made or occurrence triggers
No exclusions for construction defects or water intrusion
Long Term Tail Coverage/Completed operations available on project placements
Claims Made or Occurrence Triggers available
Built in Completed Operations coverage on the occurrence form
Coverage for owned or leased locations available
Available for Catastrophe Management

American Risk Advisors is always here to help – (516) 388-5600.