Legal Issues with Obtaining Insurance for Large Transit Projects (2014)

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B-1 APPENDIX B—TYPICAL CONSTRUCTION PROJECT INSURABLE EXPOSURES AND TREATMENT OPTIONS Exposure Traditional Treatments Alternate Treatments Comments Property in the Course of Construction Physical damage to project and owner’s property including some consequential or time element losses. This includes both the project itself as well as existing properties in the case of renovations, repairs, additions or new construction in proximity to other structures. Exposure includes vehicles, materials and equipment used in project. Builders Risk (Owner) Installation Floater Contractors Equipment Floater Commercial Property Auto Physical Damage Builders Risk (Contractor) Extension of Owner’s Property Insurance Policy Contractor’s Builders Risk DIC Contractor’s CGL Can be carried by Owner or Constructor. Include debris removal, expediting costs, delayed completion, soft costs, and business interruption. Third-Party Liability Injury to third parties, including injuries to workers/employees, and bodily injury or property damage sustained by third parties arising out of the project or its site. This includes damage to property owned by others and injuries sustained by the public. Workers Compensation Employer’s Liability Commercial General Liability Automobile Liability Umbrella or Excess Liability Owners and Contractors Protective (OCP) or Additional Insured Status (AI) on CGL Railroad Protective Liability (RRPL) Controlled Insurance Programs Owner (OCIP) Contractor (CCIP) Partner (PCIP) CIPs generally cover WC and General Liability but not Auto. May include marine and pollution liability. Should include completed operations. Legend DIC = Differences in Conditions CGL = Commercial General Liability

B-2 Exposure Traditional Treatments Alternate Treatments Comments Errors and Omissions Increased costs or damages due to breaches of professional duty or professional errors or omissions. This could include errors or omissions on the part of project managers, architects, engineers, other design or engineering consultants and design-build firms. Errors and Omissions/ Professional Liability (so- called practice policies) Project Policies (project specific) (PPL) Specific Excess Endorsement (SPX) or Specific Additional Limits Endorsement (SALE) on practice policy. Owner’s Professional Protective Indemnity Insurance (OPPI) or similar protective (first party) cover Contractor’s Professional Liability (CPrL) Contractor’s Protective Indemnity Insurance (CPPI) Default Increased costs or damages due to contractor or subcontractor default/inability to perform. Performance and Payment Bonds (surety) Contractor/subcontractor Default Insurance (CDI/SDI or Subguard) Combination of Bond and CDI/SDI Some programs combine Bond (prime) and SDI (major subs) Decision on SDI may rest with Contractor. Pollution Increased costs or damages due to the discharge or existence of contaminants or pollutants. The source of the contaminants’ may be pre-existing site conditions (known or unknown) or accidental discharges during construction. Environmental Impairment Liability/ Pollution Liability Insurance Contractors Pollution Liability (CPL) © Albert Risk Management Consultants 2013 (Used with permission)