Without a tailored insurance strategy in place, you may unknowingly have gaps in coverage or waste money on unnecessary insurance. Corporate Protection Group has developed comprehensive insurance and risk management processes to mitigate the unique risks and exposures associated with construction projects – providing assurance that your financial interests are adequately protected.
Scope of Work
- Project risk review
- Insurance coverage strategy and program design
- Lender negotiations and compliance
- Development of third-party insurance requirements
- Contract reviews and third-party insurance monitoring
Background: Our client was undertaking a large construction project and requested the general contractor take on the design scope and contract directly with the engineer and architect on the project rather than directly contracting themselves. Due to the increased exposure, the general contractor increased their fee by $7M to account for potential design build liability.
Solution: As part of our insurance due diligence review, our team had identified a more efficient solution to alleviate the general contractors’ concerns. Corporate Protection Group worked with outside counsel to negotiate errors and omissions (E&O) standards for the general contractor, engineer, and architect agreements. With these new standards implemented, our team was able to work with our client’s insurance broker to place a $10M Owner’s Protective Professional Indemnity (OPPI) program.
Outcome: Based on this approach, we established $15 million in E&O insurance protection at a cost of less than $100,000. The general contractor agreed to drop their $7M change order fee as they had confidence in our insurance solution – saving our client approximately $6.9M on the project.
Benefits to our clients
Avoid Uninsured Losses
Protect your balance sheet and have confidence knowing that your insurance program will respond the way you intended in the event of a claim.
Reduce Third-Party Exposure
Reduce exposure to uninsured or underinsured third-party vendors that could potentially lead to material losses and expose your balance sheet.
Increase Project Profits
Discover inefficiencies in the insurance markets that lead companies to waste millions of dollars on construction coverage that directly eat into your profits.
Make Informed Decisions
Better understand the unique risks and exposures associated with your construction project in order to make more informed business decisions.