Civil Engineering Reference
In-Depth Information
12
Insurance for
Design-Build Projects
Jo Ann Clement, AU, CRIS, Lockton Companies,
Kristy Garverick CPCU, CRIS, ARM, Lockton Companies, and
Elizabeth Petry, CRIS, Lockton Companies
INTRODUCTION
While each participant on any given project faces a variety of risks, designers and con-
tractors venturing into design-build (DB) project delivery must acknowledge and manage
different exposures than they encounter in traditional design-bid-build (DBB) projects.
Historically, the insurance market offered policies that were based on the clear division
of responsibility between the designer and the contractor for DBB projects. These are
professional liability policies for design professionals and general liability policies for con-
tractors. The emergence of DB, with its inherent blurring of liability boundaries between
the designer and contractor, has led to the development of insurance policies and endorse-
ments that specifically address the combined responsibility for the design and construc-
tion of a project.
The insurance program for firms pursuing DB work should include, at a minimum,
policies for professional liability and general liability, as well as workers' compensation/
employers' liability, automobile liability, umbrella, and builders' risk. Depending on the
type of projects, additional policies that may also apply are owner's and contractor's pro-
tective liability (OCP), railroad protective liability, and delay coverage. This chapter pres-
ents the risk exposures that occur in DB projects, what is covered by policies, and key
aspects of each type of policy.
TYPES OF INSURANCE COVERAGE
The different types of insurance that may be required or deemed necessary for a project
are listed in Table 12-1 and described herein.
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