News

By David Pacifici | Monday, April 25, 2022

Design-build delivery carries much greater risk to a contractor than conventional project delivery methods. Chief among these risks is the potential for increased actual or final costs to a general contractor or design-build entity compared to the estimates presented in their bid. The result is that many contractors using design-build are experiencing lower profitability or even taking losses.

In addition, contractors are making claims against their prime engineering subconsultants and the mitigation coverage in their contractor’s professional liability (CPrL) insurance at a much higher frequency and severity than the subconsultants and insurers had anticipated.

By Janice Greenberg | Monday, January 3, 2022

Construction professionals undoubtedly engage in a call or email conversation at least once a year with their insurance broker to discuss the company’s insurance coverages. Typically, these conversations center around whether to renew the company’s existing policies with its current insurance carriers or purchase policies from new insurance carriers. Sometimes, these conversations also explore whether the company is adequately insured for foreseeable risks. For general contractors and subcontractors, the focus is usually on the coverages typically required under the terms of your contracts, such as general liability, automobile liability and workers’ compensation coverage; indeed, these insurance policies should address any curveballs that might get tossed at the company during the course of a project.

By David Pacifici | Sunday, November 7, 2021

Many recent public or quasi-public projects that have utilized design-build as a project delivery method have experienced significant insurance claims due to schedule delays or cost overruns.

By Peter Brooks | Monday, August 16, 2021

The typical formula for running a successful construction and contracting business is a mixture of vision with hard work, investment and experience. But then, there’s always the unexpected — just ask the thousands of construction firms that either had projects shuttered or delayed once COVID-19 took hold in 2020. In fact, a recent survey by the Associated General Contractors of America (AGC) found that 75% of contractors had projects canceled or postponed due to the pandemic.

By Olivia Overman | Monday, August 2, 2021

Prior to the coronavirus pandemic, the professional liability market was firming across most lines of business due to loss severity. Over the past 18 months, as the economy experienced widespread layoffs, bankruptcies and cyber breaches stemming from the COVID-19 pandemic, the market was adversely impacted even further.

By Janice Greenberg | Monday, August 2, 2021

Most construction projects do not go exactly as planned. Architects need to modify plans midway through to correct errors, structural engineers approve an incorrectly specified concrete mix after failing to account for certain variables, geotechnical engineers miscalculate the stress-bearing capacity of the soil, HVAC contractors fail to design a system to meet specified needs—the list goes on and on.

By Andrew D. Mendelson | Monday, July 12, 2021

The consequences are undeniable. Global climate change has affected everything from the design and building of roads, bridges, homes and office complexes to the upgrading of our nation’s electrical grids and pipeline systems.

By Edward L. Sheiffele Jr. | Monday, March 29, 2021

According to the NAICS Association, there are approximately 1.3 million contractors with annual revenues of less than $5 million in the United States. While virtually all of these contractors are currently protecting their businesses with general liability, workers compensation, business automobile, and insurance for all of their equipment, the vast majority have not even considered purchasing professional/pollution liability insurance, which are both excluded from most commercial general liability (CGL) insurance policies.

February 16, 2021

Being a general contractor is challenging. They enter into contracts with project owners to deliver finished projects in accordance with the plans and specifications within the confines of a tight budget and schedule. Further complicating the matter, so much of a general contractors’ success is dependent upon the effective performance of their subcontractors. Thus, the success of any given project is largely determined by how well the subcontractors execute their respective scopes of work.

February 2021

When searching for a rewarding career, every professional should consider the insurance industry because of all of the benefits and opportunities it affords.