Commercial Liability Insurance for Contractors

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This course will examine each of the three coverage parts of the commercial general liability (CGL) policy—bodily injury and property damage (Coverage A), personal and advertising injury (Coverage B), and medical payments (Coverage C)— including the insuring agreement and exclusions. Although contractors may avail themselves of the coverage provided under all of the coverage parts, the most significant coverage section for contractors, and for most other business entities, is Coverage A—"bodily injury and property damage." Consequently, that section of the policy will receive more emphasis in this course than other coverage parts. After a careful review of the basic policy's coverage parts, key policy provisions and conditions will be examined, such as who is an insured, limits of insurance, and notice requirements. Finally, various endorsements that can be attached to the policy to broaden or restrict the scope of coverage or otherwise alter the basic policy terms and conditions will be reviewed. Upon completion of this course, students will be prepared to:

• Identify the unique liability exposures contractors face, including premises and operations, completed operations, contractual liability, and independent contractor liability exposures.
• Identify potential gaps between contractors' liability exposures and the coverage provided under the standard commercial general liability (CGL) insurance policy.
• Assess the coverage provided under the CGL policy with respect to a variety of construction liability claims.
• Determine appropriate coverage modifications to close potential gaps in contractors' liability insurance programs.
• Distinguish between multiple versions of various endorsements and make recommendations regarding the appropriate endorsement based on a contractor's specific operations.
• Evaluate a contractor's need for umbrella liability insurance, and make recommendations for modifications to the umbrella policy.
• Make appropriate coverage modifications to avoid duplication in coverage for contractors who participate in consolidated insurance programs, while preserving coverage on an excess basis.