Not Understanding Your Insurance Coverage Could Have Legal Ramifications

Having proper insurance coverage - including knowing what is and isn't covered - is important if legal issues arise on a project

Insurance Post It Notes Freedigitalphotos

Originally published by Matthew DeVries on Best Practices Construction Law blog.

Proper insurance coverage is an important risk management tool for contractors, subcontractors, project owners/developers and design professionals. Whether you are required by contract or law, purchase and maintaining the appropriate coverage can help you avoid catastrophe on your project.  Since there are so many types available, it is important to understand what is being covered…and what is not.

This was a hard lesson learned by a contractor recently in Vivify Construction v. Nautilus Insurance Co., a recent decision issued by the Appellate Court of Illinois.  In that case, the contractor and subcontractor (and their insurance carriers) were pointing the finger at each other for injuries sustained by an employee of the subcontractor.

(more on the ruling in Vivify Construction v. Nautilus Insurance Co....)