Insuring the project
a few of the fundamentals
One requirement for operating a business in today's world is commercial insurance. This article examines the critical factors involved in procuring insurance for a project. In doing so, it defines the difference between two common project contract terms: insurance and indemnification; it overviews the types of agreements for procuring project insurance. It then defines and details the advantages and disadvantages of four types of insurance agreements: commercial general liability (CGL), builder's risk insurance, A/E liability insurance, and wrap-up coverage insurance. It explain the elements and complexities shaping how each type provides risk coverage.