What You Need But Don’t Know About
Builders Risk, Coverage & Bonds
By Michael J. McHugh
Area Senior Executive Vice President
Risk Program Administrators — a division of Gallagher
Doug Renkosik
CPMM, Director of O&M
Huntley Community School District 158
Congratulations to your district. After many months of enduring town hall meetings and community coffee events, your district fully passed your building referendum. After the congratulations and thank yous have been passed around and the balloons and confetti shot in the air, the real work begins for the
business office.
There are many steps involved when undertaking a building project, including;
- Securing Financing
- Selecting an Architect
- Choosing Contractors
- Putting Together Bid Specifications
- •Receiving Performance/Bid Bonds and Certificates of Insurance from the Contractors
- Ensuring Builders Risk Coverage is in Place to Protect the Project from Loss
These responsibilities bring to light various insurance exposures your district has. We will focus on the requirements for Performance, Payment & Bid Bonds. In addition, we will focus on the importance of having a Builders Risk policy in place for any new or renovation construction work before the first shovel breaks ground.