Page 333 - TCDB combined Book

312 The Complete DESIGN BUILDER

Insurance:

There are many different types of Insurance available for the Construction Industry. The
minimum coverage would include the following categories.

General Liability

Builder's Risk

Boiler Policy

General Liability:

The general liability insurance policy covers legal liability for personal and property
damage for your operations on a continuous basis. The normal method of calculating the
premium is based on your annual revenue. It is important to be insured on a completed
operations basis due to the ongoing risk after completion of your projects. It is important to
avoid interruptions in your Insurance and would request written confirmation of continuous
completed operations coverage when contemplating a change of Insurance Companies. There
will be a number of exclusions with this type of policy and suggest that you thoroughly review any
coverage contemplated to fully understand what is included or not included in your particular
policy.

Professional errors and omissions coverage would not normally be included in a general
liability policy and therefore it is imperative that you receive proof of coverage from all design
professionals retained by your company. On projects with no design professional involvement it is
important that your Insurer be aware of your contractual obligations and the associated liability.

All subcontractors should provide proof of Liability Insurance Coverage with no on-site
work commencing until receipt of an acceptable proof of coverage.

The Worker's Compensation Insurance coverage should also be current and recommend
that all subcontractors provide an original Certificate of Good Standing prior to commencing
work and upon completion.

There are certain operations that will need special insurance and endorsements. Special
consideration should be given to work requiring demolition and the use of explosives, caissons,
pile driving, shoring and underpinning. This is not a complete list of special circumstances but
simply some of the operations that should be brought to the attention of your Insurer.