Insurance for Construction Managers at Risk
Coverage for construction managers who take on construction risk and guarantee a price, rather than only advising the owner.
At risk construction management is rated like contracting. Carriers treat it very differently from CM as an advisor, and the application needs to be clear about which one you do.
How Risk Shows Up in CM at Risk
Guaranteed price
Cost overruns and disputes with subcontractors land on you.
Means, methods and site safety
Controlling the site brings injury and property exposure that advisors do not have.
Preconstruction advice
Constructability and value engineering advice is professional work that a contractor’s policy may exclude.
Subcontractor insurance
Your protection depends on the insurance your subcontractors carry and the contracts behind it.
The Stack Most Construction Managers at Risk Carry.
Design work usually needs contractors professional liability on top of GL. Public work usually needs surety bonds.
Hover a layer to see what it covers. Every firm is different, so treat this as a starting point.
Carriers Don’t Always Understand What You Do.
Contractors who also design or consult carry a professional exposure that a standard contractor policy often excludes.
When the work is misread
- Design and consulting work excluded on a contractor’s general liability policy
- Design-build work with no professional coverage
- Additional insured and waiver wording that does not match the contract
- Subcontractor requirements left unchecked
How we submit your firm
- Your design and consulting work described separately from building
- Contractors professional liability where it fits
- Certificates and endorsements matched to each contract
- Subcontractor requirements reviewed with you
Advisor or At Risk?
Many firms do both. We split the revenue so each part is rated correctly, and pair contractors professional liability with general liability where it fits.
Questions We Hear From Construction Managers at Risk.
Contractors ask about certificate wording from general contractors, design work under build contracts, and bonds for public jobs.
Answers are general. Your policy and your contract always control.
Ask yours on a 15-minute callThe GC wants additional insured for ongoing and completed operations.
Very common. The completed operations part matters because claims often come after the job. Many general liability policies include blanket wording when a written contract requires it. We check your endorsements before the certificate goes out.
We do some design under our build contracts. Is that covered?
General liability usually excludes professional services. Contractors professional liability covers design and design-assist work you do or subcontract.
A contractor wants workers' comp even though I have no employees.
This is common when you do site work for a builder. Many contractors will not accept an owner-only exemption. A policy that covers you as the owner, with a waiver of subrogation if the contract asks for one, usually solves it. State funds and private carriers differ on what they can add, so we compare both.
The public job needs a bond.
Bid, performance and payment bonds are underwritten on your finances and experience. Start early, because the first bond takes the longest.
Straight Answers
Not sure how your firm was classified?
Send us your current policy or application. We’ll tell you how your work reads to an underwriter.
Review My CoverageTell Us About Your Firm. We’ll Tell You What We See.
Starting out or renewing, with a policy in hand or not. If something is worth discussing, we’ll call. If not, we’ll say so.