Below you'll find a list of all posts that have been categorized as “Construction”
By Sarah Licata for AssuredPartners Construction insurance and surety bonds both provide different types of protection on a construction project, but a common misconception is that a surety bond is another type of insurance. So, what is the difference between the two? What is Construction Insurance and How Does it Work? What is a Surety Bond and how Does it Work? Click to find out>>>
By Sarah Licata for AssuredPartners Managing projects in the construction industry means managing risk. Every step in a project from before it has even started until after it has been completed can leave you open to potential risks. These are a few of the most common construction risks: Safety Job Site Security Project Steps you can take to mitigate potential loss>>>
By Maureen Gallagher for AssuredPartners Many property policies contain contractual limitation provisions. These policy provisions are valid and enforceable in most states. The provision limiting the amount of time policyholders have to complete the work paid for by their insurance company to one year is particularly problematic. When policy provisions like this exist, if the repair or replacement has not been completed within the time frame, the carrier only pays actual cash value (ACV). This is a fairly common provision. It should be noted that Ordinance and Law Increased Cost of Construction provision also has a time limitation to repair or replace, or there is no coverage for the increased cost of construction. Standard ISO language is two years, and other …
By Blaine Allen for AssuredPartners The construction industry is one of the largest sectors in the US economy. Nearly $1.4T worth of structures are constructed each year and it employs more than seven million workers across 733,000 businesses. As 2022 kicks off, many of these construction industry professionals will be wondering what issues & challenges we will face in the next 12 months. While the PPP funds in 2020 and 2021 were life savers to many businesses, we are unlikely to see similar measures in the future. Things are slowly getting back to normal, but that doesn’t mean there still aren’t challenges to the industry in 2022. Some issues described below are unique to the construction industry, and others are …
By Lynne W. Cook for AssuredPartners Ironically, there are thousands of surety bonds, but most people are unfamiliar with this three-party agreement that is designed to guarantee a principal’s (the #1 party, which is likely you or your business) integrity, honesty, performance, and financial responsibility, as well as compliance with a law or contract. So, who are the other two parties involved in this three-party agreement and what is it that requires I get a bond? Here are a few of the more common situations that use commercial surety bonds to lessen the risk of loss to the obligee (the #2 party, who is requiring the bond) by the third-party guarantor (the # 3 party, which is a corporate surety …
By Gary Semmer, CIC, CWCA, Executive Vice President & Construction Vertical Practice Leader for Assuredpartners Does standard General Liability insurance provide coverage for design activities or modifications and environmental or remediation services? Great question, and the chances are likely that the answer is no. Commercial General Liability and Umbrella policies have evolved over the years, but one thing has remained constant: they contain Professional Liability and Pollution Liability ‘exclusions or restrictions’ that negate coverage. Additionally, more subcontract insurance agreements require Contractor’s Professional Liability (errors & omissions) coverage for design/build activities or design modifications and Contractors Pollution Liability coverage for environmental/remediation services provided. Read more here>>>
By Gary Semmer for AssuredPartners A great question to stop and ask yourself – how certain are you that in the event of a claim your insurance program will trigger coverage? Often, contracts get signed, excited to have that piece completed and ready to get moving with the next part. But, if you aren’t checking your insurance program’s fine print ahead of signing a contract you may be signing something that could be the beginning of a major problem later on. Let’s examine 3 problematic areas: Indemnification Additional Insured Requirements Coverage Restrictions or Exclusions Click to read more>>>
By Nick Newton for AssuredPartners Anyone working in the construction bond industry has seen the scenario where a client or prospect is requesting bonding capacity larger than the standard surety market is willing to provide. While some sureties will utilize tools like escrow or collateral, the SBA Bond Guarantee Program offers an alternative solution, enabling greatly increased capacity for your client. The SBA guarantees 80% of the bond obligation to the surety; 90% for firms that are minority-owned, veteran-owned, and service-disabled veteran-owned, 8(a) and HUBZone certified, and all contracts $100,000 or less. This reduced exposure makes it more palatable for the 42 sureties that participate in the program to offer increased bonding capacity. Click for the program highlights>>>
By Tom Jackson for EquipmentWorld.com While there’s no big upswing in the construction economy this year, there is at least forward progress, according to FMI’s 2021 Engineering and Construction Third Quarter Outlook report. Given a contentious election and pandemic, any progress is probably a good thing. And for transportation construction, the outlook turns especially bright after 2022. According to the report, total engineering and construction spending for the U.S. is forecast to end 2021 up 2%, compared to up 5% in 2020. Get more details here>>>
By Sedat Kunt for ConstructionExec.com From a shortage of skilled workers to supply chain disruptions to the spiraling cost of essential materials, construction companies face substantial pressures. These risks come at the same time as insurance prices are rising and securing coverage is more challenging, threatening the profitability, and even the viability, of certain projects. Insurance pricing in the U.S. and globally, on average, has been increasing for several quarters. As insurers increase scrutiny on all applications—including extensions—companies in the construction industry are experiencing longer placement and renewal timelines and requests from underwriters for additional information. Read three actions you can take for more effective insurance renewals>>>
