General contractors face enormous insurance-related challenges, particularly in NY, where construction accidents are commonplace, and claims can be catastrophic. Many firms face unnecessary risk due to improper insurance – from policies limiting coverage to a narrow set of services to broad exclusions for the most likely and dangerous types of claims involving worker injuries – and insureds are often entirely unaware of how poor their coverage is. This is partly due to unknowledgeable agents that compete purely based on price, the lack of standardized coverages inherent to the surplus lines/non-admitted insurance market, and the intense competition among contractors for work requiring overhead to be kept low, often at the expense of quality insurance coverage.
Unfortunately, even firms that purchase strong policies with broad coverage can be at significant risk if their subs don’t carry proper policies. One of Chadwick’s roles is to help mitigate that risk by aiding our clients in drafting subcontractor insurance requirements, reviewing subcontractor policies, and, if necessary, suggesting alternatives or helping procure replacement policies.