Reference
Additional Insured: A party added to an insurance policy who receives coverage under that policy, typically a project owner or general contractor added to a subcontractor GL policy. Aggregate Limit: The maximum total amount an insurer will pay for all claims during a policy period. Bid Bond: A surety bond guaranteeing a contractor will enter the contract at the bid price and provide required bonds. Builders Risk: Insurance covering a structure under construction against physical damage from covered perils. Certificate of Insurance (COI): A document summarizing an insured coverage, provided to third parties as evidence of insurance. Claims-Made Policy: A policy that covers claims reported during the policy period, regardless of when the event occurred. Completed Operations: GL coverage for bodily injury or property damage arising from work after it has been completed and turned over to the owner. Course of Construction: Another term for builders risk insurance. Deductible: The amount the insured pays out of pocket before insurance coverage applies.
Endorsement: A written modification to an insurance policy that changes coverage terms, conditions, or limits. Errors and Omissions (E&O): Professional liability insurance covering claims arising from professional services, also called professional liability. Experience Modification Rate (EMR): A multiplier applied to workers comp premium based on actual claims experience compared to industry average. General Aggregate: The maximum total GL payments for all claims in a policy period, excluding products-completed operations. Hold Harmless Agreement: A contractual provision where one party assumes liability for another party, typically supported by insurance. Indemnification: A contractual obligation to compensate another party for losses. Inland Marine Insurance: Coverage for mobile property including construction equipment, tools, and materials in transit. Installation Floater: Inland marine coverage for materials and equipment being installed as part of a construction project.
Loss Run: A report from an insurer listing all claims on a policy over a specified period, used for underwriting and renewal. Named Insured: The entity specifically identified as the insured on the policy declarations. Named Peril: A policy covering only perils specifically listed, as opposed to special form (all-risk) coverage. OCIP (Owner Controlled Insurance Program): A wrap-up insurance program purchased by the project owner covering all contractors on a project. Occurrence: An event or series of events arising from one cause that results in a claim. Payment Bond: A surety bond guaranteeing the contractor will pay subcontractors, suppliers, and laborers. Performance Bond: A surety bond guaranteeing the contractor will complete work per contract terms. Per Occurrence Limit: The maximum amount an insurer will pay for a single occurrence. Primary and Noncontributory: An endorsement making the policy primary over other valid coverage without seeking contribution. Products-Completed Operations: A GL coverage part protecting against claims arising from products sold or work completed.
Retrospective Rating: A premium calculation method where final premium is adjusted based on actual losses during the policy period. Scaffold Law: New York Labor Law Section 240, imposing absolute liability on owners and GCs for gravity-related construction injuries. Self-Insured Retention (SIR): A dollar amount the insured pays before excess or umbrella coverage applies, similar to a deductible but managed differently. Soft Costs: Indirect project costs covered by builders risk endorsement, including loan interest, architectural fees, and permit fees during delay from a covered loss. Special Form: An all-risk coverage form covering all causes of loss except those specifically excluded. Subcontractor Default Insurance (SDI): First-party coverage for a GC financial loss when a subcontractor fails to perform. Subrogation: An insurer right to recover claim payments from the responsible third party. Surety Bond: A three-party agreement where the surety guarantees the contractor obligations to the project owner.
Tail Coverage: Extended reporting period coverage allowing claims to be reported after a claims-made policy expires. Umbrella Policy: Excess liability coverage that sits above primary GL, auto, and workers comp policies providing additional limits. Underwriting: The process by which an insurer evaluates risk and determines premium and coverage terms. Waiver of Subrogation: An endorsement preventing the insurer from seeking recovery from a specified party, commonly required in construction contracts. Workers Compensation: Statutory coverage providing medical benefits and wage replacement for employees injured on the job. Wrap-Up Insurance Program: A single insurance program covering all parties on a construction project, either owner-controlled (OCIP) or contractor-controlled (CCIP). Your Work Exclusion: A GL policy exclusion eliminating coverage for damage to the insured own completed work, subject to the subcontractor exception.
ACORD Certificate: The standard insurance industry certificate of insurance form issued by ACORD (Association for Cooperative Operations Research and Development). Blanket Coverage: Insurance covering multiple items or locations under a single limit rather than scheduling each separately. CCIP (Contractor Controlled Insurance Program): A wrap-up program purchased and administered by the general contractor covering all subcontractors. Cross-Liability: Coverage provision allowing one named insured to make a claim against another named insured under the same policy. Davis-Bacon Act: Federal law requiring prevailing wage rates on federally funded construction projects exceeding $2,000. Explosion, Collapse, and Underground (XCU): Hazards historically excluded from GL policies for certain construction classifications, now typically covered. General Conditions: The contractual terms governing a construction project, which typically specify insurance requirements. Loss Control: Risk management activities designed to prevent or reduce the severity of losses. Manuscript Policy: A custom-written insurance policy tailored to a specific insured, as opposed to a standard form policy. Monopolistic State Fund: A state workers comp system where all employers must purchase coverage from the state fund, with no private market option.
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