Among the many concerns and considerations project owners/developers and general contractors must face when beginning a particular construction project is ensuring they are adequately insulated from liability when a project goes awry. Large and small construction projects alike possess the inherent risk of potential bodily injury and property damage. Properly planned and administered insurance programs are the way in which owners and general contractors can ensure that when someone is injured, or property is damaged (including the project itself), only the insurance companies pay.
Construction Insurance Policies
Construction projects can involve many players (e.g., owners, general contractors, subcontractors, architects, engineers and construction managers), and each of these players should have liability insurance. In construction, the most common insurance policy is a commercial general liability (CGL) policy. Under a standard CGL policy, insurers are, essentially, obligated to defend and indemnify the insured in connection with claims arising out of bodily injury or property damage, subject to certain construction-related, and other, policy exclusions.
