One of the many facets of the construction contract is the Insurance Provisions. In this episode, we address the importance of reviewing these provisions and provide tips to navigate and comply with these contractual requirements.
The Issue: The construction contract drives the expectations for the project and has many facets. One of these is the Insurance Provisions. These provisions should be fairly simple to navigate and comply with but are too often overlooked, or worse, discounted and ignored.
Why It’s Important: Failure to meet the insurance requirements in your construction contract opens your firm up to a self-inflicted financial penalty created when an event occurs that one of these provisions was supposed to address.
Short Answer: A qualified insurance broker will help make sure you have addressed all the contractual requirements. To facilitate the process and gain some efficiencies, your broker could also establish a checklist of key/typical insurance requirements and terminology for you and train your staff to identify and confirm compliance. Avoid a potential headache down the road by bringing your broker, along with your legal counsel, in to contribute within their respective areas of expertise before executing the contract.