You may wonder why you, as the designer of record, should care about the insurance coverage of the contractor on your construction projects. After all, that is an issue between the contractor and the owner, right? Not so fast. Recent court cases addressing whether or not commercial general liability (CGL) policies provide insurance coverage for a contractor’s poor workmanship can create problems for architects and engineers.
Since architects and engineers usually have errors & omissions policies (and you do have E&O coverage, right?), they may be the only ones with “deep pockets” should litigation arise over construction defects. The take-away? It *is* your business to make sure that the contractors on your projects have sufficient resources to pay for construction defects. It is also in your best financial interest to ensure that you are only working with top-notch, quality contractors.
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Construction Law Updates, Insurance Updates
DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
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