Contractors are often surprised to learn that they do not have insurance coverage if the materials they provide fail. A recent case out of the 11th Circuit Court of Appeals (which oversees Alabama, Florida and Georgia), upheld the trial court’s ruling that a contractor’s insurer was not required to cover claims that the concrete it provided did not meet specifications. The controversy arose when Morgan Concrete (“Morgan”) agreed to supply [...]
We get a lot of calls from contractors asking about whether they have coverage under their Commercial General Liability insurance for a construction defect claim. The short answer is always--Maybe. An assessment of the claim requires a review of your policy and, equally important, which state’s law will interpret the claim. The first question, and often times only question, to be answered is whether the damage caused by the construction [...]
Borrowing equipment is a common occurrence on construction sites. But, it’s riskier than you might think. There could be a number of questions about whose insurance is responsible to pay for damages should something go wrong. The Situation A fellow subcontractor has asked to borrow your backhoe for the remainder of the day. You don’t need it for the work you are doing, so you let him borrow it. The [...]
There are fundamental differences between insurance and surety bonds and knowing the difference will help you avoid making mistakes, should claims arise. This blog will discuss the differences between insurance and surety bonds. Insurance An insurance policy is a two party contract between an insurer and the insured. The policy is intended to protect the insured. The cost of insurance is calculated by the insurer based on how many claims [...]
