INSURANCE AND RISK MANAGEMENT criminal activity.


 Installation Floaters – Tese cover other work not normally protected by Builder’s Risk. Testing coverage should be included. Your General Liability coverage won’t help you where work hasn’t been accepted by owner. Other coverages to seriously consider include: first and third party cyber protection; Contractor’s Equipment; and key person life insurance.


Contractual Issues Tere are a number of action items


in this category, including: 1. Get a copy of subcontractor GL and excess policies for the larger or more hazardous ops. Te AGC Standard Form Subcontract allows for this request.


2. Builder’s Risk – Some of my


recommendations include:  Confirm who is going to purchase.


 Protection of the work.  Waiver of Subrogation – ensure you are protected.


 Deductibles – watch for a higher water damage deductible.


 Exclusions and coverage limitations.


 Quake and flood – make owner assume loss.


 Get a copy of policies from major subcontractors.


3. OCIP/CCIP options are becoming increasingly popular. Get a copy of the wrap policy and have a broker review it.


Insurtech Te purchase of insurance products


direct and online is becoming more common, and many startups now capitalize on this trend. Tis concept works for specific insurance issues such as trip or pet insurance. It might work for life insurance too, but only for very trusted sources. Tis won’t carry over to complex


construction accounts. Many insurance carriers are looking for angles to avoid paying claims. To purchase GL, Excess


www.AGC-CA.org WHERE SEDGWICK’S CONSTRUCTION CLIENTS SET THEIR EXPECTATIONS


Renowned for its construction and government contracts expertise, Sedgwick’s nationally recognized construction lawyers know no boundaries. In partnership with its contractor, owner, architect, and engineer clients on maters large and small, complicated and routine, Sedgwick’s singular goal is to exceed expectations. To this end, Sedgwick construction lawyers deliver.


and Builder’s risk without a knowl- edgeable broker is like dealing with the IRS without a qualified accountant. Any broker who does not have a


detailed understanding of construction must be replaced. Look for brokers who have the Construction Risk Insurance Specialist (CRIS ®) desig- nation. AGC membership is also a must. If your broker is only an order taker, he only has liability for failing to procure the coverage you request.


By understanding what you’re


getting in all your insurance contracts, you’re taking an important step to minimize your company’s risk to protect your bottom line. 


Bob Mahan, Principal of Mahan


Insurance Brokers, Inc., is a registered engineer and a member of the California Bar. Contact him at (949)279-9937 or bob@mahanins.com.


www.SEDGWICKLAW.com


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Associated General Contractors of California 13


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