General Contractor

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  • 1.  Who Carries Builders Risk Insurance?

    Posted 03-01-2021 09:26
    Our contract with our customers requires the customer to carry builders risk to protect the project rather than our company carrying the policy and charging the customer for the cost. In general we do this because we run more than 100 active projects at any given time and that's a lot of policies to manage. We will provide the policy when asked but in general push off the policy and expense to the customer. We're a GC/CM doing about $150m/year.

    I'm curious what would be considered "industry standard". Is it common for the customer (the one we builder for) to carry the policy? 

    Similarly, is anyone aware of any "blanket policies" that are not project specific but provide coverage to all projects?

    Thanks in advance,
    michael

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    Michael Preyss
    Chief Financial Officer
    Garmong Construction Services
    Indianapolis IN
    (317) 682-1001
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  • 2.  RE: Who Carries Builders Risk Insurance?

    Posted 03-02-2021 11:04

    Michael - We have looked into ways to streamline the BR process but still tend to follow the owner purchase process.   We had looked into blankets policies but that didn't work with the project specific based insurance & push back from many of our owners who wanted to provide with their carrier at lower costs & to avoid gaps with their property insurance (we do a lot of remodel work).   We only verify BR coverage with named insured status (or additional with waiver of subro) of projects > $1M.   

    You would think there would be an easier way, but then again it is an industry that still can't move away from their Accord forms.

    Take care..

    Todd



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    Todd Rakowski
    CFO
    C.G. Schmidt, Inc.
    Milwaukee WI
    toddr@cgschmidt.com
    (414) 828-8375
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