In Canada, home builders acquire protection via various forms of insurance, including, among others, builders risk insurance, wrap-up general liability insurance and contractors comprehensive general liability insurance. Together, these types of coverage, whether purchased on a project-by-project or continuous basis, not only provide builders with protection for loss and liability throughout and following construction projects but also act as a means of securing the interests of financial stakeholders associated with the project(s). This study was designed to satisfy the following key objectives: Ÿ Develop an understanding of the issues surrounding builders risk insurance; and Ÿ Develop an understanding of the issues surrounding post-construction liability insurance. Primary research for this study consisted of conducting nationwide interviews of residential construction companies, insurance underwriters and brokers, and associations and lending organizations, while secondary research consisted of documentation and literature reviews of previously published articles, research and proprietary association and company materials. According to the research conducted, the insurance market for all types of commercial coverage has hardened over the last three years. A "hard" market designates an environment characterized by rising prices and reductions in capacity to underwrite insurance. The market has reacted to the events of September 11, reductions in reinsurance capacity, poor underwriting results and a difficult investment climate. The insurance industry's appetite for insuring residential construction projects has been particularly weak in response to widely publicized catastrophic fires at construction sites at several different locations across Canada and the emergence of new risks such as mold and terrorism. The insurance market for residential construction is contracting, with lower risk tolerance and fewer companies participating in the market. Over the last three years, home builders have identified construction insurance as a critical problem area with reports of higher premiums and deductibles, reduced levels of coverage, new warranties and conditions attached to the policies, as well as refusals of coverage. These recent developments are a cause of concern in the housing industry with respect to the cost and availability of insurance. The cost of insurance ultimately affects housing affordability and the profitability of the home builders' business.

The intersection between construction and insurance is an often overlooked, but essential consideration. This important resource is a perfect practice handbook for construction lawyers, written by practitioners with considerable expertise in both construction and insurance. This practical book provides overviews of individual construction insurance topic areas in each chapter, chosen because of their relevance to construction lawyers.

Part 1 contains summary descriptions of the risks faced by house builders & renovators in a standardized format, arranged by risk category, that includes a definition of the risk and information on the average impact of the risk, causes of the risk, management strategies, and the types of insurance available to manage the risk. Case studies are included involving events that resulted in losses to the builder, the damages that resulted, the insurance coverage in effect, and the lessons learned. Part 2 identifies & analyzes the current issues faced by builders with respect to traditional insurance and the parameters on which such insurance is based. It also summarizes the various types of insurance policies available in order to educate builders to make well-informed insurance buying decisions. Part 3 compares various non-traditional insurance vehicles, including single insured programs, group programs, and captive programs. Part 4 describes the steps involved in moving to a captive insurance program. The last part is a builder's guide to construction risk management & insurance, and includes answers to frequently asked questions about residential construction insurance.

This guide has been prepared to provide new home builders and renovators with information about insurance and to assist them in making effective and knowledgeable decisions about purchasing insurance coverage. The guide is based on a report, Variability in Construction Insurance and Alternative Solutions, prepared by Marsh Canada Limited.This report was commissioned by Canada Mortgage and Housing Corporation (CMHC) to offer a comprehensive look at the risks in the construction industry and traditional and non-traditional means of insurance protection.

This highlight summarizes a study that documented the variability in residential construction insurance and analyzed alternative insurance options for builders. It reviews the key variable elements in insurance policies available to the construction industry, such as perils covered, policy exclusions, inclusion of soft costs, coverage for property in transit, and claim & coverage limits. It also summarizes alternatives such as reciprocal insurance exchange, captive insurance programs, and group funded deductible programs.

Publisher's Note: Products purchased from Third Party sellers are not guaranteed by the publisher for quality, authenticity, or access to any online entitlements included with the product. Protect your business from all types of risks--insure your projects with advice from the experts Here you'll find the answers to your questions about insurance, bonding, and risk management for all of your construction projects. This much-needed book helps you assess your requirements for insurance coverage, evaluate policies, find the fairest rates, obtain bonding, and manage risks professionally and confidently. Written by the foremsot experts at Ernst & Young LLP and Willis Corroon Construction, this authoritative guide gives you the information and methods you need to simplify and systematize your project insurance bonding, and risk management issues, and protect your business from all types of liabilities: You'll learn how to: establish your requirements for various types of insurance; determine how to get the insurance you need at the best rate; read and evaluate insurance contracts; secure bonds for both contractors and subcontractors; obtain workers compensation coverage; evaluate environmental issues; understand the role of sureties in litigation. Construction contractors and subcontractors, CPAs, law firms, and insurance and bonding agents will all welcome this comprehensive guide and the authoritative help it gives in ensuring successful outcomes for construction projects of every kind.