Construction Insurance/ Risk Management

Question 1

Does insurance eliminate all the risks a contractor may be involved in?

Answer 1

No, but it shifts some of the burden to a professional risk taker.

Question 2

Name the 7 types of insurance

Answer 2

1. All risk builders insurance
2. Contractor’s property insurance
3. Liability insurance
4. Automobile insurance
5. Worker’s compensation insurance
6. Employer’s liability insurance
7. Title insurance

Question 3

1. All risk builders insurance

Answer 3

Protects the construction project and materials form external forces. There are endorsements that can be added to include protection against fire, wind, storms, vandalism and “act of God”.

Question 4

2. Contractor’s property insurance

Answer 4

Protects the contractors office and related equipment. There are “floaters” which could include contractor’s equipment, transportation of equipment and materials

Question 5

3. Liability insurance

Answer 5

Protects the contractor in reference to risks related to non-employee injuries or damages caused by the contractor to someone else’s property. This type of insurance could include the following:

(1) Completed operations insurance
(2) Owner’s protective liability insurance

Question 6

4. Automobile insurance

Answer 6

Protects the contractor in cases related to employees legally driving company owned vehicles in the course of doing business. Note: It is the responsibility of the contractor to verify with the insurance carrier that each employee is a legal driver.

Question 7

5. Worker’s compensation insurance

Answer 7

Protects the employing contractor from additional financial damages from a lawsuit by an employee claiming a work related injury, illness and/or fatality. The premium rates are associated with the classification of employees’ job description. This form of insurance is
covered further int eh class portion dealing with Act 317.

Question 8

6. Employer’s liability insurance

Answer 8

The coverage provides added risk protection to an employer who has an employee injured or killed in a related construction accident. This is over and above the worker’s compensation insurance. Your insurance provider will provide you with additional information to
determine what is in your best interest.

Question 9

7. Title insurance

Answer 9

The owner’s policy assures a purchaser that the title to the property is vested in that purchaser and that is free from all defects, liens and encumbrances except those listed as exceptions in the policy or are excluded from the scope of the policy’s coverage. It also covers losses and damages suffered if the title is unmarketable!

Question 10

It is the general contractor’s obligation to ask for and receive copies of all required insurance policies from…

Answer 10

the subcontractors insurance provider

Question 11

Get these insurance policies minimum from subs insurance provider

Answer 11

1. Liability insurance
2. Worker’s compensation insurance
3. Vehicle insurance of company vehicles