Many businesses rely on certificates of insurance (COIs) to verify coverage for other entities they do business with. In particular the construction industry relies heavily on COIs in their operations. But do all parties fully understand the benefits and potential problems of COIs? Benefits of COIs COIs do contain valid and pertinent information about the policies in effect for the Named Insured. Items such as types of coverage, limits of coverage, effective and expiration dates, agent name and address, names of carriers providing coverage, etc. All this information is useful to the certificate holder, especially for contractors at…
Wrap-ups, also known as OCIP or CCIP (Owner or Contractor Controlled Insurance Program) depending on who is considered the “CIP sponsor” of the project, are an increasingly popular avenue for Owners and/or Contractors to control critical elements of a construction project, including the insurance coverage.
A general contractor client asked me this very question. He did ask in jest as we discussed his insurance renewal. However, his point is a valid one. The current standard ISO Commercial General Liability (CGL) policy was put into use in 1986 and was a 9 page form. This current form is on its eighth revision as of April 2013 and now contains 16 pages.
Over the past 20 years I have been involved with construction insurance and studied the General Liability policy and how it relates to construction. One thing I have learned is that there is a misconception of the coverage provided by the General Liability policy in regards to Additional Insureds.
Over the past 20 years I have been involved with all aspects of construction insurance, including Workers’ Compensation. One frequent question I receive from my clients is the question of why their Experience Modification Rating (EMR) increased, yet they had not suffered any additional losses.