by Matthew A. Struck, CPCU, ARM – August 15, 2017

Unsure of what insurance your contractor should have on their certificate?  Or are you a contractor that wants to know what insurance is reasonable for your clients to require?

Here’s what you need:

  • All coverage to be written on a primary and non-contributory basis with a waiver of subrogation in favor of the [Public Entity]
  • Certificate of insurance naming the [ENTITY] as an additional insured; to be provided prior to work being completed and reviewed/approved by the [ENTITY]’s Risk Manager; including the following coverages:
    • General Liability on an occurrence form with project-specific limits of no less than $1,000,000 per occurrence and $2,000,000 in aggregate and including coverage for products & completed operations.  Evidence of XCU coverage should be addressed in the certificate.  [OPTIONAL] Railroad Protective Liability coverage should be endorsed on to the policy or place as a stand-alone coverage mirroring the liability limits on the main policy.
    • Auto Liability on an occurrence form with limits of no less than $1,000,000 combined single limit
    • Workers’ Compensation coverage with NJ statutory limits and including Employer’s Liability limits of no less than $500,000/$500,000/$500,000
    • Excess Liability coverage on a follow-form basis and coverage terms at least as broad as the underlying policies with limits of no less than [LIMIT MAY VARY] $5,000,000 per occurrence and in aggregate (any combination of primary and excess liability limits may be used to achieve the total [LIMIT MAY VARY] $6,000,000 per occurrence limit).  Excess Liability coverage to include all of the following as underlying – General Liability, Auto Liability, and Employer’s Liability.
    • [OPTIONAL] Contractor’s Pollution Liability coverage with limits of no less than [LIMIT MAY VARY] $2,000,000 per incident.  Coverage should include first-party clean up and third-party liability coverage along with transport and disposal.
    • [OPTIONAL] Professional Liability (Errors & Omissions) with limits of no less than [LIMIT MAY VARY] $1,000,000 per occurrence and in aggregate.
    • [OPTIONAL] Owners & Contractors Protective Liability policy with limits of no less than $1,000,000 per occurrence and in aggregate in the name of [PUBLIC ENTITY]
    • [OPTIONAL] Builder’s risk coverage on a special form basis for the full value of the completed project.  Coverage should also include Business Interruption coverage for any fees or revenues that might be interrupted due to a delay in completion as the result of a covered loss during construction or immediately following, and prior to the Contractor relinquishing care, custody, and control of the project.
  • All coverage to be written through insurance carriers with a Financial Strength rating of A- V or higher as established by AM Best.