When it comes to builder’s risk insurance, the new 2013 edition of EJCDC’s Construction Series documents contain more specifics about insurance requirements, such as causes of loss and procedures for receipt and distribution of insurance proceeds for a covered loss. The standard “default” requires the contractor to obtain this insurance, but provides the owner the option to maintain the authority of obtaining this policy by using an optional supplementary condition.
Working in the fields of risk management and insurance requires EJCDC to stay current with changing practices. The insurance market is constantly evolving in areas such as terminology, requirements, and expectations of insurance companies. EJCDC’s 2013 C documents now require as much protection to the owner and the contractor as possible. They are practical and feasible in setting commercially available terms that the contractor, for example, can meet in purchasing commercial general liability insurance or an owner or contractor can meet in buying builder’s risk insurance.
Additionally, the C-700 document updates include requirement for contractor’s professional liability insurance and pollution liability insurance, which are essential to typical infrastructure projects. There is also a revision for notification when a mandatory policy is being cancelled or is lapsing, and there is a reduction in the advance notice time and the number of parties that must be contacted.