Construction General Liability insurance provides protection against two types of financial loss arising out of a lawsuit against the company. First, it coveras damages awarded to a third party because of injury or damage for which the insured is legally responsible, including loss of use of the property claims. In addition, it covers the cost of defending the insured against the charges alleged in the suit, including attorney fees, investigation costs, and other legal expenses. Which of the two coverages mentioned do you think eat up a majority of premiums, defense costs or damages?
In my 20 plus years as a Construction Risk Specialist only a handful of the claims went towards the indemnity (payment of damages on the insured’s behalf) Defense costs can amount to huge sums even when the insured is cleared of any legal liability for damages
Interested in contractual agreements and the legal duties associated….