The four contracts every GC needs
A GC program is GL, workers' comp (or a Texas non-subscriber plan), commercial auto, and an umbrella. Builders risk is bought per project.
- GL on an occurrence form with products-completed operations aggregate
- Additional insured on an ongoing AND completed-ops basis (CG 20 10 + CG 20 37)
- Primary and non-contributory wording
- Waiver of subrogation on GL, WC, and auto
Texas anti-indemnity (Ins. Code Ch. 151)
Since 2012 Texas voids broad-form indemnity in construction contracts; you can only be indemnified for the indemnitor's own negligence. Your AI endorsement must track this.
- Use CG 20 38 or carrier equivalents that limit AI to the named insured's acts
- Review owner contracts for 'to the fullest extent permitted by law' clauses
- Sub agreements should mirror the upstream contract
Subcontractor management
Most GC claims come from subs. Carriers audit sub costs and charge for every dollar without a certificate.
- Collect COIs before mobilization, not at billing
- Require limits equal to yours
- Track expirations; a lapsed sub is an uninsured sub
- Consider a sub default insurance or surety requirement over $250K
Builders risk done right
Course-of-construction coverage protects the structure until occupancy. It is the most under-bought coverage in residential construction.
- Insure to completed value, not cost-to-date
- Add soft costs and delay for financed projects
- Check the wind/hail percentage deductible in coastal counties
- Confirm who buys it — owner or GC — in the contract