We have emerged from the economic doldrums of the recession, and construction is booming in many parts of the country.   Increased construction activity launches a new cycle where job opportunities frequently attract construction partners and trades with a lesser commitment to excellence in their field along with stunted attention to loss prevention. As construction activity spikes contractors increasingly feel the pressures of competition and construction deadlines which sometimes lead to quality control compromises. More than ever attention to the terms of construction agreements may be the only way to avoid financial disaster when a problem emerges…either during or after construction is completed. This includes careful and knowledgeable consideration of the insurance requirements of the construction parties along with diligent pursuit of satisfactory compliance.

The advisers engaged by contractors and design professionals are much more sophisticated today with limiting their clients’ operational and contractual exposure. Insufficient insurance requirements are sometimes driven by the underwriting restrictions imposed on the construction industry by the insurance marketplace. Meanwhile, an owner/developer relying on a certificate of insurance that includes additional insured status may be surprised to find that this critical insurance benefit is non-existent due to language in today’s insurance policy forms in combination with the terms in the construction documents.

Albert Risk’s familiarity with a wide range of owner and contractor agreements, and our devotion to modifying language to suit our clients' best interests, not only serves to minimize contractually assumed risk and insulate our clients' assets, but also aids in protecting our clients’ insurance policies from becoming diluted by claims activity.

Beyond that, Albert Risk is not only skilled with traditional insurance placements but also with the design, evaluation, and management of a successful Owner Controlled (OCIP), or Contractor Controlled Insurance Program (CCIP). We frequently advise our clients on the relative pros and cons of the insurance options, conventional vs. OCIP vs. CCIP. We also assist in demystifying the considerations between surety and contractor default insurance.


Martin S. Berman
Real Estate, Construction and Hospitality Practice Leader
(781) 449-2866
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Five Pitfalls in Managing Construction Contractors’ General Liability Insurance

The largest General Contractors generally have broad General Liability insurance coverage, likely because their size and risk management capabilities created the leverage with insurers needed for successful coverage negotiation. These contractors also tend to use larger national or global insurance brokers having personnel specializing in construction industry insurance and some “clout” with underwriters.