Insuring design-build accounts entails understanding factors that are somewhat unique in the realm of insurance. Here’s an article from IRMI that does a good job of explaining some of the basic issues, namely:
1.) Risk Transfer is not enough – no one should rely on contracts and hold-harmless agreements
2.) Contractors Professional Insurance – not all forms are created equal and some older forms might not address many of the issues that exist today.
3.) The Definition of Professional Services – this determines scope of coverage. Care must be taken in how it is drafted or gaps in coverage will result.
4.) Direct vs Contingent Liability – it’s important to know how your policy addresses this.
5.) Joint Venture Coverage – There are numerous issues with joint ventures including past ventures, scope of coverage, named insured status and more.
6.) Exclusions – as with any insurance policy, it’s the exclusions that make the difference. Policies vary greatly in the number and scope of exclusions, which can be removed, which can be restated… Having a partner who can help you navigate exclusions is very important.
We work with these issues every day. It’s all we do. Contact us to discuss your next design-build insurance issue.
PDI is an Indianapolis-based wholesale brokerage firm with a national network that includes thousands of insurance agents, brokers, architects, engineers and contractors in all 50 states. Since PDI’s beginning in 1980, we’ve handled a single line of coverage: errors & omissions (E&O) for design professionals.