Construction insurance coverage requirements don't always match what the market can deliver.
Construction insurance decisions affect every participant on a project, but owners bring a distinct set of priorities to those decisions. The owner’s perspective on risk is shaped by financing obligations, project viability and long-term asset considerations that may sit outside the contractor’s frame of reference. When those perspectives are not aligned early, gaps can surface at inopportune times.
Three areas seem to generate the most recurring issues in the current marketplace: (1) the disconnect between what construction contracts require and what the insurance market will write, (2) how owners and contractors see the coverage picture differently and (3) the claims dynamics that follow when those differences are not resolved beforehand. None of these issues require new products or legal innovation. They require earlier conversations.
