Download - Attendance at the two dates you are assigned is mandatory Presentation date Evaluation date
111
Attendance at the two dates you are assigned is mandatory Presentation date Evaluation date
Attendance at the other eight (8) class dates will count as extra points toward your total points for EXAMS
Class attendance grade will be based on a total of 52 class periods, not 60 as shown on Course Schedule
Need video camera operator for each presentation date – double credit 2 pts/class
22
Construction Engineering 221
Construction InsurancePart 2
333
RPQ1. Professional liability risk would more likely apply to a design-build contractor rather than a general contractor.A. True B. False
2. Worker’s Compensation pays only medical costs associated with an accident.A. True B. False
3. “Wrap-Up Insurance” is provided by theA. General Contractor B. OwnerC. Architect D. Construction Manager
444
RPQ
1. Professional liability risk would more likely apply to a design-build contractor rather than a general contractor.
A. True B. FalseThe correct answer is A. True
555
RPQ
2. Worker’s Compensation pays only medical costs associated with an accident.
A. True B. FalseThe correct answer is B. False (also pay for lost wages)
666
RPQ
3. “Wrap-Up Insurance” is provided by the
A. General Contractor B. OwnerC. ArchitectD. Construction Manager
The correct answer is B. Owner
777
Builder’s Risk Insurance
Most widely used Project Property Insurance Not use by engineering contractors – why? Provides property coverage only Does not include liability coverage in any
form Deduct cost of land prep and foundation –
why? Premium mainly dependent on:
Type of construction Availability of fire-fighting facilities
888
All-Risk Builder’s Risk Insurance Widely used on projects – covers all risks Covers:
Project proper – building Temporary structures on jobsite Materials in transit, stored on site & not
yet installed Very flexible coverage is available Exclusions and inclusions can be
customized
999
Subrogation Clause Subrogation gives the insurance company
the right to sue the offending party in the insured’s name for recovery of its loss
This clause could defeat the entire purpose of the property insurance – Builder’s Risk Insurance policy
The use of “Named Insureds” helps avoid the undesirable effects of subrogation
101010
Named Insureds
List of “Named Insureds” usually includes: Owner Architect and all other consultants General contractor
Subrogation cannot usually be employed against parties named as in the “Named Insureds” list
111111
Waiver of Subrogation
Parties waive their rights to subrogation Many Owners and general contractors
require subcontractors to include a “Waiver of Subrogation” clause as part of their insurance coverage
121212
Professional Liability Insurance
Professional liability insurance provides protection from: liability arising out of errors omissions or negligent acts of the insured in
performing design and other professional services.
Needed by design-build contractors to cover designers
131313
Worker’s Compensation InsuranceThe Underlying Economic Principle
The costs associated with an on-the-job injury or death of an employee, regardless of fault, is an expense of production and should be borne by the industry.
141414
Worker’s Compensation Insurance
Exclusions: Domestic servants, farm labor, casual
employees, independent contractors, and workers in religious or charitable organizations
In some states – business that employ less than a specific number of employees
When injured worker accepts W.C. benefits – they forfeit the right to sue their employer Except in gross negligence by the employer
151515
Worker’s Compensation Insurance Compensation
Medical benefits shall be provided without limitation as to maximum total cost
Wage compensation shall be paid for as long as the worker is disabled
Include occupational disease (asbestos) Provides legal defense to the insured Some states allow self-insurance
161616
Worker’s Compensation Insurance
Manual Rate set by state rating bureaus Adjusted annually Vary by state and classification of work Higher premiums for higher risk work
Roofing, Masonry, Carpentry, Painting, Structural Steel work
How large an expense is workers compensation insurance? (up to a $1 per $1)
Need for loss reduction programs
171717
Worker’s Compensation Insurance
Worker’s compensation insurance companies have become active participants in the field of construction safety and have established merit systems whereby contractors are rated according to their accident experience.
A good safety record lowers workers compensation insurance
SAFETY PAYS!
181818
Employer’s Liability Insurance
Coverage when an accident falls outside the coverage of workers compensation Company did not provide a safe work
site as stipulated by state law – injured elects to sue
Employee injured in another state in which the contractor is not covered
Will pay legal costs incurred in contractor’s defense as well as any judgment (up to face amount of policy)
191919
A few questions….. What are the three purposes of Umbrella
Excess Liability Insurance?
What is Wrap-Up Insurance? And why can it be important on large jobs?
202020
Umbrella Excess Liability Insurance
Liability claims may fall between the coverage carried under separate underlying liability policies
Raises the policy limits of the contractor’s existing liability insurance
Provides some coverage that are not covered by the underlying liability polices (self-insured for damage to other property outside the construction site - $25,000 deductible umbrella policy)
212121
Wrap-Up Insurance
All insurance is purchased by the Owner. No insurance cost from general contractors or subcontractors
All claims are handled by central agency – quick claim service and centralized safety inspections
May save owner money on very large projects
DISADVANTAGE: No incentive for contractors to prevent claims – their insurance risk rating in not impacted
222222
Unemployment Insurance
Coverage required by federal and state law
Weekly benefit payments to workers whose employment is terminated through no fault of their own
The cost of the unemployment compensation system is paid for by employers through federal and state taxes.
232323
Unemployment Insurance Questions
How can an employee disqualify himself from unemployment benefits?
Voluntarily quitting their last job without good cause
Discharged for misconduct Being directly engaged in a strike or other
labor dispute Failing to apply for or accept an offer of
suitable work
242424
Unemployment Insurance Questions
How long can an employee draw unemployment?
26 weeks (paid by state) or 39 weeks (paid by state and federal) if
unemployment reaches a certain level or More than 39 weeks (paid by federal
government) in some areas if national unemployment rate is high
252525
Certificate of Insurance
Printed form executed by insurance company that a named insured has in force the insurance designated by the certificate ACCORD form is standard Proof of proper insurance coverage per
contract Includes list of “Named Insureds”