Insurance for Commercial Construction

Standard commercial construction contracts require GL limits of one to two million dollars per occurrence with two to four million dollar aggregates, workers comp at statutory limits with one million dollar employers liability, commercial auto at one million dollars combined single limit, and umbrella coverage of ten to twenty-five million dollars. Larger projects may require higher primary limits and umbrella towers of fifty to one hundred million dollars. Per-project aggregates on GL and umbrella policies are increasingly common requirements. ALKEME maintains programs that satisfy the most demanding commercial specifications.

Qualifying for a wrap-up program as a contractor enrolled in an OCIP or CCIP typically requires demonstrating adequate safety performance, usually an EMR at or below 1.0, an active safety program with a dedicated safety manager, and willingness to comply with the wrap-up program safety and reporting requirements. When sponsoring your own CCIP, you need sufficient project value and enrolled payroll to make the program cost-effective, typically a minimum project value of twenty-five to fifty million dollars. ALKEME evaluates both enrollment qualifications and CCIP sponsorship feasibility for our commercial construction clients.

Commercial contractors need professional liability when their scope extends beyond traditional construction into design-build delivery, construction management, preconstruction services, or owner representation. If your contract includes any services characterized as professional, such as design, engineering consulting, value engineering, or project management advisory, you have professional liability exposure that GL will not cover. ALKEME evaluates your project delivery methods and contract language to determine whether professional liability is necessary and, if so, places coverage with carriers experienced in commercial construction professional risk.

On most commercial projects, the construction contract specifies whether the owner or the contractor procures the builders risk policy. The procuring party should obtain an all-risk or special form policy with coverage equal to the completed project value, including soft costs if elected. Key endorsements include flood and earthquake coverage where applicable, testing and commissioning coverage, debris removal, pollutant cleanup, and ordinance or law coverage. ALKEME coordinates builders risk placement with the responsible party and ensures the policy satisfies lender requirements, contract specifications, and the actual exposure profile of the project.