LEARN: What you need to look for in a contract. How to read construction contracts for insurance from the brokers perspective. The history & evolution of additional insureds. How additional insured endorsements interact with construction contracts.

1. HOW TO READ A GL POLICY
● Section 1 – Coverages – Page 1 thru 9 of CG 001
● Coverage A – Bodily Injury & Property Damage – CG 001 Pg 1-6
○ Exclusions:
○ Expected or Intended Injury
○ Contractual Liability
○ Liquor Liability
○ Workers Compensation or Similar Laws
○ Employers Liability
○ Pollution
○ Aircraft, Auto or Watercraft
○ Mobile Equipment
○ Damage to Property
○ Damage to your product
○ Damage to work
○ Damage to Imparied Property or Property no physically damaged
○ Recall of Products, work or impaired property
○ Personal & Advertising Injury
○ Electronic Data
○ Distribution of Material in Violation of Statutes
● Coverage B – Personal and Advertising Injury – CG 001 Pg 6-7
● Coverage C – Medical Payments – CG 001 Pg 7-9

2. How to read the GL Policy:

4. * change to the standard wording of “insured Contract”

6. Does not contain an agreement to
indemnify a third party
CONSTRUCTION CONTRACT

13. HOW TO READ A GL POLICY
● Section II – Who is an Insured - CG 001 Pg 9-10
○ Individual – includes the spouse
○ Partnership or Joint Venture – Includes members, partners and spouses
○ Limited Liability Co ( LLC) – Includes Members and Managers
○ Organization other than above ( Corp, Inc) -Includes Executives, Director & Officers
○ Limited Liability Co ( LLC) – Includes Members and Managers
○ Organization other than above ( Corp, Inc) - Includes Executives, Director and
○ A Trust – Includes your Trustees
○ Volunteers & Employees
○ Your Real Estate Property Manager
○ Your Legal Representative - If you die
○ Newly Formed Organizations – Other than a Partnership, Joint venture or LLC
○ ADDITIONAL INSUREDS ARE DETERMINED BY THE ENDORSEMENT
PROVIDED

18. HOW TO READ A GL POLICY
● Section III – Limits of Insurance - CG 001 Pg 10
○ Explains how each limit of coverage provided is applied
○ Occurrence
○ Aggregate
● Section IV – Conditions - CG 001 Pg 10-12
○ Explains what happens when :
○ Bankruptcy
○ Duties in the Event of a Loss
○ Legal Action Against the Carrier
○ Other Insurance
○ Primary Insurance
○ Excess Insurance
○ Method of Sharing
○ Premium Audit
○ Representations – What is provided at time of application
○ Seperation of Insureds
○ Transfer or Rights of Recovery Against Others to Us
○ When we do not renew
○

24. HOW TO READ A GL POLICY
● Section V - Definitions - CG 001 Pg 12-16
○ HIGHLIGHTED WORDS WITHIN THE POLICY WILL
○ BE FOUND IN THE DEFINITION SECTION

30. CONSTRUCTION CONTRACT STANDARDS
○ Indemnification/Hold Harmless
● Defend, Indemnify and Hold Harmless
○ General Liability:
● Limit of Insurance $1/2M or $2/4M
● Per Project Aggregate
● Additional Insured
● Ongoing Operations
● Completed Operations
● Primary
● Non-Contributory
● Waiver of Subrogation
● Term of Completed Operations
○ Automobile:
● Limit of Insurance $1/2M
● Additional Insured
● Primary
● Non-Contributory
● Waiver of Subrogation
○ Workers Compensation:
● Limit of Insurance - Unlimited in State of NY
● Out of State Employers must have NY listed in Section 3A
● Waiver of Subrogation

31. ISSUES TO ADDRESS THAT YOU DO NOT SEE -
CONSTRUCTION CONTRACT STANDARDS
● General Liability
○ Soft Hammer Clauses
○ Hard Hammer Clauses
○ Height Limitations
○ Exterior Work
○ Designated Work Limitations
● Automobile
○ Loading and Unloading Exposure
● Workers Compensation:
○ Leased employees
○ Alternate Employer Endorsement
○ Stand Alone WC for Client with EPO
● Umbrella /Excess:
○ Limit of Insurance - Controlled by Lenders, NYC DOB or Investors
○ Is Auto & WC Included?
○ Follow Form - Additional Insured
○ Follow Form - Primary/Non-Contributory
○ Follow Form - Waiver of Subrogation

32. ○ EXHIBIT A
○ Insurance Requirements
○ Contractor and all Subcontractors, at their sole cost and expense, shall maintain and keep in full force and effect the
following types of insurance coverage and limits. Prior to commencement of any Work, Contractor must provide
evidence, satisfactory to Owner, of the following coverage for Contractor and all Subcontractors:
○
○ Certificate Holder(s):
○ Owner
○ Additional Insureds (“Additional Insureds”):
○ Owner
○ Architect
○ Each mortgagee of the Project Site; and
○ Each of the foregoing parties’ respective members, managers, shareholders, officers, directors, employees,
consultants and/or designees, agents, successors and assigns, who have been designated by Owner (“Designees”).
○
○ Workers Compensation:
○
○ 1. Employers Liability Insurance with limits not less than $500,000 per occurrence; per employee for disease,
and in the aggregate for disease
○ 2. The policy form and coverage must be provided as directed by the State of New York Compensation Law,
including an all states endorsement, Occupational Disease Insurance and Voluntary Compensation Insurance.
○ 3. Where applicable, U.S. Longshore & Harborworkers Compensation Act endorsement shall be attached to the
policy.
○ 4. If employees are brought into New York from another state or the insured is based within another state, the
insured must provide proof that New York is a listed State within section 3A of the workers compensation coverage.
○ 5. Leased Employee Liability – if Subcontractor leases one or more employees through the use of payroll, employee
management or other company, the Subcontractor must directly procure Workers Compensation/Employers Liability
insurance in the name of the entity holding this Agreement. In addition, the Workers Compensation/Employers
Liability coverage to and for the leased employees provided by Leasing company must be evidence and include an
Alternative Employer/Leased Employee endorsement, naming the Contractor as the alternate employer

33. ○ Commercial General Liability:
Minimum Limits: Bodily Injury & Property Damage:
○ $1,000,000 Each Occurrence
○ $2,000,000 Aggregate
○
1. Commercial General Liability coverage for itself and all additional insureds until (2) years after the date
of final payment and shall maintain Completed Operation Coverage for itself and all additional Insureds
for at least (5) years after the completion of Work. A per project aggregate shall apply.
2. Commercial General Liability Insurance must be written on an ISO occurrence form(CG 00 01 1093) or
a substitute form providing equivalent coverage and shall include but not be limited to contractual
liability and coverage arising from premises, operations, independent contractors, personal injury,
advertising injury, explosion, collapse and underground property damage.
3. The policy(ies) shall provide additional insured status on a primary/non-contributory basis to the
Additional Insureds using ISO Additional Insured Endorsement CG 20 10 11 85 or endorsement(s)
providing equivalent coverage to the additional insureds (a combination of CG 2038 04/13 and CG
2037 04/13 may be used). Coverage shall apply on a primary/non-contributory basis before any
insurance maintained by the Additional Insureds. The Indemnitees (as defined in the Agreement) must
each be named as additional insureds. The following entities must be named as additional insured:
4. Contractual Liability coverage must be included providing insurance for all Indemnitees.
5. Coverage limits required by this contract may be satisfied through the combination of General Liability
and Umbrella/Excess coverages.Thus, in the event that coverage obtained by the Contractor contains
greater limits that the minimum limits required above, the additional insureds shall be entitled to such
greater limits, and this Agreement shall be deemed to require greater limits.
6. Coverage provided cannot contain any limitation or exclusion related to: (i) Residential Construction
that would relate to the Project; (ii) Limitation or Exclusion of # of Stories that contractor can work at
as it relates to the Project; (iii) Limitation or Exclusion of Location of where project is location (5 Borough
Exclusion); (iv) Subsidence; (v) “Action Over”; and (vi) “Hammer Clause”.
7. Contractor shall be responsible for any deductibles applicable to the General liability insurance coverage.
8. Coverage shall contain a waiver of subrogation endorsement in favor of the Indemnified Parties and
Additional Insureds .
9. When any required insurance expires, Contractor shall supply the Owner with Certificates of Insurance and
amendatory riders or endorsements that clearly evidence the continuation of all coverage in the same manner,
limits of protection, and scope of coverage as was provided by the previous policy. All renewal and
replacement policies shall be in form and substance satisfactory to Owner and written by carriers acceptable to
Owner.
10. This insurance may not include terms which make the coverage afforded to an additional insured excess to
other insurance on which such insured is also an additional insured.

34. ○ Commercial Automobile:
Minimum Limits: Bodily Injury & Property Damage - $1,000,000.
○
○ Business Auto must include coverage for Bodily Injury & Property Damage liability arising out of all Owned,
Leased, Non-Owned and Hired vehicles.
○ Must name the Additional Insureds as additional insured on the commercial automobile policy to cover the
load/unloading exposure.
○ Coverage must contain a waiver of subrogation in favor of the Additional Insureds.
○ Commercial Umbrella Liability:
○ Minimum Limits: Bodily Injury & Property Damage – $5,000,000 (or such higher amount as may be
required by applicable law, rules, requirements and regulations, including, without limitation, as required by any
governmental agency with authority of the Project site (e.g., Department of Buildings).
○
○ Umbrella/Excess coverage is in addition to ALL General Liability, Commercial Automobile and Employers
Liability
○ Umbrella/Excess coverage must include as additional insured’s all Additional Insureds on the Commercial General
Liability Insurance and Commercial Automobile Insurance.
○ Umbrella coverage provided by the Subcontractor for the Additional Insureds shall be primary over any insurance
maintained by the Additional Insureds.
○ If coverage is provided on an excess basis, coverage must follow form to the underlying General Liability and
Commercial Automobile coverages.
○ Property Insurance:
○
○ Contractor and each Subcontractor are required to provide insurance to protect their respective interests in
construction/building materials and supplies, tools and equipment while on or off the job-site. Owner is not
responsible for any loss (i.e. fire, destruction, theft), of such personal property.
○
○ Waiver of Subrogation:
○
○ Contractor and each Subcontractor waive all rights against Owner, Architect and their respective agents, officers,
directors and employees and all required additional insureds for recovery of damages to the extent these damages are
covered by Commercial General Liability, Commercial Umbrella Liability, Business Auto Liability, Workers
Compensation and Employers Liability insurance, and Pollution Liability maintained per requirements stated above.

52. CG 2010 4/13
ADDITIONAL INSURED WORDING
○ Any person or organization whom you are required to
includes as an additional insured on this policy under a
written contract or written agreement, but the written
contract or written agreement must be:
● Currently in effect or becoming effective during the term of the
policy and
● Executed prior to the “occurrence “
ACCEPTABLE

53. CG 2010 4/13
ADDITIONAL INSURED WORDING
○ An Person(s) or Organization(s) when you and such person(s) or
Organization(s) have agreed in a written contract or written
agreement that such person(s) or organization(s) be added as
additional insured on your policy.
This only covers the party you are in a contract
with – it does not cover other additional insureds
that are required to be named within the contract

54. CG 2010 4/13
ADDITIONAL INSURED WORDING
○ Any person or organization that is an owner or manager of real
property or personal property on which you are performing ongoing
operations, or a contractor on whose behalf you are performing
ongoing operations but only if coverage as an additional insured is
required by a contract or written agreement that is an “insured
contract” and provided the “bodily injury” or “property damage
first occurs,or the “personal and advertising injury” offense is first
committed subsequent to the execution of the contract or agreement
○ This only covers the Owner and GC entities – No other entities that
are required in a contract are covered

55. ADDITIONAL ENDORSEMENTS
Construction Contract Related