Before You Sign a Contract

Written by: Jim Smith

Before you sign a new contract we advise you to review the insurance requirements for possible use of outdated terminology.  Many construction contracts we have seen still require the contractor to provide evidence of “Comprehensive General Liability” insurance but that is a term that is no longer used in the insurance industry. In 1986 the Insurance Services Office (ISO) issued a new policy form and adopted the name “Commercial General Liability” (CGL) and also eliminated the Broad Form Property Damage coverage previously afforded for property damaged while in the care, custody or control of the contractor.  That coverage is now included automatically in the new form by means of exceptions to the CCC and property damage exclusions.

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